Alaska Airlines and Hawaiian Airlines Merger Clears Major Regulatory Hurdle

Alaska Airlines and Hawaiian Airlines have made significant progress in their proposed merger, successfully navigating a crucial regulatory milestone, as reported by the Washington Post. The nearly $2 billion deal marks the first major airline merger in nearly a decade and is anticipated to enhance travel options between Hawaii and the mainland U.S., while also boosting Alaska Airlines’ international reach.

A key development occurred when an overnight deadline passed without the U.S. Department of Justice (DOJ) filing a lawsuit to block the merger. This absence of legal action suggests the deal is one step closer to fruition. Alaska Airlines announced that the DOJ’s regulatory investigation period has ended, signaling a significant step forward in the merger process. However, the merger still requires approval from the Department of Transportation.

The news of the DOJ’s inaction came as a surprise to many industry observers, especially given the Biden administration’s stated commitment to scrutinizing mergers in highly concentrated industries. The administration’s lack of intervention in this case could indicate a more favorable regulatory environment for this particular merger.

Related: Alaska Airlines’ Hawaiian Acquisition Faces Antitrust Scrutiny

Alaska Airlines emphasized its collaboration with the Hawaii attorney general to address concerns related to the merger, particularly those affecting Hawaiian Airlines and local consumers. As part of these efforts, Alaska Airlines has pledged to maintain the Hawaiian Airlines brand, thereby protecting local jobs and ensuring continued service to Hawaii.

Hawaii Governor Josh Green also commented on the merger, highlighting his administration’s efforts to assess its potential impact on the state. According to the Washington Post, Green assured that the merger would preserve local union jobs and expand access to mainland destinations for Hawaii residents. “The merger will vastly expand the number of destinations throughout North America for Hawai‘i residents that can be reached nonstop or one-stop from the islands,” Green stated.

Source: The Washington Post