Alaska and Hawaiian Airlines Merger Approved

Alaska Airlines has announced that its proposed $1.9 billion acquisition of Hawaiian Airlines has successfully passed scrutiny from the U.S. Justice Department, as the investigation period concluded without any legal challenges. This marks a significant step forward for the merger, which, if approved, would represent the largest consolidation of U.S. airlines since Alaska's merger with Virgin America in 2016. The next phase involves securing approval from the U.S. Transportation Department, although the timeline for this process remains uncertain. In a statement, Alaska Airlines confirmed that the expiration of the Justice Department's review under the Hart-Scott-Rodino Antitrust Improvements Act is a crucial milestone in the merger process. This development follows a series of legal setbacks for the airline industry, including the Justice Department's successful opposition to JetBlue Airways' acquisition of Spirit Airlines earlier this year and a previous challenge against a partnership between JetBlue and American Airlines. Hawaiian Airlines has faced numerous challenges leading up to the merger announcement last December, including the devastating Maui wildfires, intensified competition from Southwest Airlines, and a sluggish recovery in travel to Asia post-COVID-19. Despite these hurdles, Hawaiian Airlines has shown signs of recovery, with executives reporting improved booking trends and a nearly 12% increase in share value this quarter. The merger plans include maintaining both airlines' brands while integrating operations under a unified platform, resulting in a combined fleet of over 360 aircraft serving more than 130 destinations. Neither the Justice Department nor the Transportation Department provided immediate comments regarding the merger on Tuesday.