Alaska Airlines has announced that its plan to acquire Hawaiian Airlines has successfully cleared the U.S. Justice Department after the antitrust investigation period ended without any legal action taken to block the deal. This comes eight months after the initial $1.9 billion agreement was announced by the two airlines for their merger. The next step in the process involves obtaining approval from the U.S. Transportation Department before the deal can be finalized. The timeline for this approval process remains unclear at the moment.
Alaska Airlines released a statement declaring the completion of the U.S. Department of Justice’s regulatory investigation under the Hart-Scott-Rodino Antitrust Improvements Act as a significant milestone in the joint venture. The merger between Alaska Airlines and Hawaiian Airlines would mark the largest consolidation of U.S. carriers since Alaska’s merger with Virgin America back in 2016. The airlines expressed their optimism towards the progress made in joining forces.
Hawaiian Airlines encountered various obstacles leading up to the merger announcement, such as the Maui wildfires, heightened competition from Southwest Airlines, and the slower recovery rate of travel to and from Asia due to the ongoing impacts of the Covid-19 pandemic. Despite facing net losses in nearly every quarter since 2020, Hawaiian executives have noted positive trends in booking and improving performance. The market response to Hawaiian Airlines has been favorable, with their shares increasing by almost 12% this quarter, contrasting with the overall decrease in shares of most other airlines.
Operational Strategy
Upon announcing the merger agreement in December, Alaska Airlines and Hawaiian Airlines revealed their plan to maintain both carriers’ individual brands while operating under a unified platform. The consolidated fleet will comprise over 360 airplanes and serve more than 130 destinations worldwide. This strategic integration aims to leverage the strengths of both airlines and enhance their operational efficiency in the competitive aviation industry.
The approval from the U.S. Justice Department represents a significant step towards finalizing the merger between Alaska Airlines and Hawaiian Airlines. Despite the challenges faced by the airlines in recent times, they remain optimistic about the potential benefits of combining their resources and expertise. The successful completion of this merger would not only strengthen the position of both carriers in the market but also create opportunities for growth and innovation in the airline industry.