The Approval of Alaska Airlines and Hawaiian Airlines Merger by U.S. Justice Department

Alaska Airlines has successfully passed its plan to acquire Hawaiian Airlines through the U.S. Justice Department after the antitrust regulators completed their investigation of the $1.9 billion agreement. This clearance marks a significant step towards the consolidation of the two carriers with no lawsuit obstructing the deal.

While the U.S. Justice Department has given its approval, the next hurdle for Alaska Airlines and Hawaiian Airlines is securing approval from the U.S. Transportation Department. The timeline for this approval process remains uncertain, leaving the closing of the deal up in the air.

The merger between Alaska Airlines and Hawaiian Airlines would mark the largest consolidation of U.S. carriers since Alaska’s merger with Virgin America eight years ago. This merger is expected to bring about a significant transformation in the airline industry, with combined fleets surpassing 360 airplanes and more than 130 destinations being covered.

Leading up to the agreement, Hawaiian Airlines encountered various obstacles including the Maui wildfires, heightened competition from Southwest Airlines, and the sluggish recovery of travel to and from Asia due to the Covid-19 pandemic. Despite facing net losses in most quarters since 2020, Hawaiian Airlines has observed positive booking trends recently, resulting in a nearly 12% increase in shares for the quarter.

Upon announcing the merger in December, Alaska Airlines and Hawaiian Airlines declared their intention to maintain each carrier’s brand identity while operating under a unified platform. This strategic move aims to streamline operations and enhance efficiency with a consolidated fleet of over 360 aircraft serving a wide array of destinations.

The approval from the U.S. Justice Department for the merger between Alaska Airlines and Hawaiian Airlines signals a pivotal moment in the aviation industry. As the two carriers navigate the final stages of regulatory processes, the prospect of a consolidated force in the airline market looms large, promising a new era of collaboration and growth for both entities.