Summary The DOJ investigation period has expired; a big milestone cleared for Alaska & Hawaiian merger. Commitment in place to maintain Hawaiian Airlines brand, local jobs, and enhance travel options. Governor Green endorses the merger and highlights benefits for consumers, employees and communities.
A significant milestone has passed in the proposed merger of US carriers Alaska Airlines and Hawaiian Airlines, with news that the time period for the US Department of Justice (DOJ) to complete its regulatory investigation has expired . While considerable work is yet to be done to close the deal, this is seen as a major stepping stone on the way to bringing the two airlines together. A big hurdle cleared Alaska Airlines announced today that the time granted for the investigation under the HSR Act has expired, although the proposed combination remains subject to other customary closing conditions.
A group of passengers attempted to sue the carriers due to fears that a merger would “lessen competition.” These include approval from the US Department of Transportation (DOT) of an interim exemption application, and when that has been granted, the two airlines can proceed with the integration. Alaska Airlines (Alaska) added: "During the DOJ's review, Alaska worked closely with the Hawai'i Attorney General to reinforce and expand upon our commitment to the future of Hawaiian Airlines and to Hawai'i customers.
These include plans to maintain the Hawaiian Airlines brand and local jobs and continue providing strong service between, to, and from the Islands." That cooperation was echoed in a statement from the Office of the Governor of Hawaii, Governor Josh Green, who said that over the past months, he and his administration had worked with Alaska Airlines' leadership to carefully review the potential impacts of consolidation and insisted that any changes expand travel options for residents and preserve union jobs. "Alaska has reinforced commitments to our state and will maintain the Hawaiian Airlines brand, preserve and grow union jobs in our Hawai'i, as well continue to provide crucial passenger and air cargo service to, from, and within the Islands.
I am confident that by the joining of these two airlines, a stronger company will emerge and offer more travel options for Hawai'i residents and local businesses, and will will enhance competition across the US airline industry." A ringing endorsement from the Governor Governor Green added his appreciation for the DOJ's strong consideration of Hawai'i's unique needs during its review of the proposed merger and concluded with this ringing endorsement: "I look forward to this merger proceeding and the overwhelming consumer, employee and community benefits that will result from it." A merger will bring together two great loyalty programs - as part of oneworld.
The merger will greatly expand the number of destinations throughout North America that Hawai'i residents can reach nonstop or one-stop from the islands. The deal also allows HawaiianMiles members to retain the value of their miles while gaining access to more destinations worldwide. Both the Governor's Office and Alaska were quick to release the news, but it is only a matter of hours since the prescribed time for the DOJ investigation expired.
In the next few days, we will probably learn a lot more about the next steps that Alaska and Hawaiian Airlines need to take and perhaps a tentative timeline for the merger. Alaska said the first step is to obtain DOT approval for the interim exemption application. Once that hurdle is cleared, the integration of the two airlines will proceed fully.
Alaska said that includes welcoming Hawaiian Airlines guests and employees into the Alaska Air Group and expanding benefits and choices for consumers throughout Hawai'i, the Asia-Pacific region, the Continental United States and globally..
