Alaska Airlines and Hawaiian Airlines Enter Timing Agreement with DOJ

Alaska Airlines and Hawaiian Airlines have entered into a significant timing agreement with the Department of Justice (DOJ). The agreement stipulates that the airlines will refrain from finalizing their merger until 90 days after both parties have certified substantial compliance with a second request for antitrust-related information.

The merger, which was initially announced on December 2, 2023, by Alaska Airlines, proposes the acquisition of Hawaiian Airlines in an all-cash deal valued at $18 per share for Hawaiian Airlines’ shareholders. However, regulatory procedures, particularly under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), necessitated the submission of additional information, triggering a second request from the DOJ.

Related: Alaska Airlines’ Hawaiian Acquisition Faces Antitrust Scrutiny

As part of the agreement, the waiting period under the HSR Act will be extended until 30 days after both Alaska Airlines and Hawaiian Airlines have met the DOJ’s requirements, effectively delaying any potential merger plans. The SEC filing on March 27, 2024, confirmed the signing of the agreement, emphasizing the airlines’ commitment to cooperation with the DOJ throughout the approval process.

Shares of Hawaiian Airlines experienced a slight downturn, closing at $13.32 on March 27, down from its peak of $14.72 per share on January 29. This fluctuation reflects market sentiments amidst the regulatory uncertainties surrounding the merger.

Both Alaska Airlines and Hawaiian Airlines remain optimistic about the merger’s prospects and expressed their intention to continue collaborating with the DOJ to secure the necessary approvals. The timing agreement underscores the airlines’ dedication to adhering to regulatory protocols and ensuring compliance with antitrust regulations.

Source: Aviation Week