Alaska Airlines has received approval from the U.S. Justice Department for its plan to acquire Hawaiian Airlines. The approval came after the antitrust regulators completed their investigation of the $1.9 billion deal without filing a lawsuit to block it. The next step for the two airlines is to obtain approval from the U.S. Transportation Department before finalizing the merger.
The merger between Alaska Airlines and Hawaiian Airlines would be the largest in the U.S. airline industry since Alaska merged with Virgin America eight years ago. This marks a significant milestone in the process of combining the two carriers, as stated by Alaska Airlines in a recent statement.
Hawaiian Airlines has faced numerous challenges leading up to the acquisition deal announcement. Factors such as the Maui wildfires, increased competition from Southwest Airlines, and the slower recovery of travel to and from Asia post the Covid-19 pandemic have affected Hawaiian’s performance. Despite posting net losses in most quarters since 2020, executive leaders have noted an improvement in booking trends.
In a surprising turn of events, Hawaiian Airlines’ shares saw an increase of nearly 12% this quarter, while most other airlines’ shares experienced a decline. This positive movement in Hawaiian’s stock price reflects growing confidence in the airline’s future prospects.
The merger agreement between Alaska Airlines and Hawaiian Airlines, announced in December, outlined plans to maintain each carrier’s brand while operating under a unified platform. The combined fleet of over 360 airplanes would serve more than 130 destinations, solidifying the airlines’ position in the market.
The approval from the U.S. Justice Department paves the way for Alaska Airlines to move forward with its acquisition of Hawaiian Airlines. Despite the challenges faced by the airlines in recent times, the merger presents an opportunity for growth and consolidation in the competitive airline industry.
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