Friday, August 23, 2024 Hawaiian Airlines and Alaska Airlines have taken a significant step toward completing a $1.9 billion merger, potentially marking the largest consolidation in the U.S.
airline industry since 2016. The deal, first announced in December, has cleared a crucial regulatory hurdle as the Department of Justice (DOJ) allowed the deadline for its review to pass without interference earlier this week. This development signifies a major milestone in the merger process, bringing the two carriers closer to uniting under the Alaska Air Group.
The merger between Hawaiian Airlines and Alaska Airlines, if finalized, would require further approvals, including clearance from the U.S. Department of Transportation (DOT).
This customary closing condition also involves an interim exemption application, a standard part of the regulatory process in airline mergers. While the DOJ’s lack of immediate action is a positive sign for the merger, the final approvals from the DOT will be critical in determining the merger’s future. The DOJ has recently demonstrated skepticism toward airline consolidations, most notably by blocking the proposed merger of JetBlue and Spirit Airlines.
As such, the Hawaiian-Alaska merger could still face significant scrutiny, especially considering the potential impacts on competition within the airline industry. The exact timeline for the approval process remains unclear, with experts suggesting that it could take years for the merger’s logistics to.