Alaska Airlines and Hawaiian Airlines have made significant progress in their planned merger, successfully passing a key regulatory milestone, the Washington Post reported. The nearly $2 billion deal is the first major airline merger in nearly a decade and is expected to improve travel options between Hawaii and the U.S. mainland while increasing Alaska Airlines’ international reach.
A major development occurred when an overnight deadline passed without the U.S. Department of Justice (DOJ) filing a lawsuit to block the merger. This lack of legal action suggests the deal is one step closer to completion. Alaska Airlines announced that the DOJ’s regulatory investigation phase has ended, signaling significant progress in the merger process. However, the merger still requires approval from the Department of Transportation.
News of the Justice Department’s inaction came as a surprise to many industry observers, especially given the Biden administration’s stated commitment to closely scrutinizing mergers in highly concentrated industries. The government’s failure to intervene in this case may indicate a more favorable regulatory environment for this particular merger.
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Alaska Airlines emphasized its cooperation with the Attorney General of Hawaii to address concerns related to the merger, particularly those affecting Hawaiian Airlines and local customers. As part of this effort, Alaska Airlines has committed to maintaining the Hawaiian Airlines brand to protect local jobs and ensure continued service to Hawaii.
Hawaii Governor Josh Green also commented on the merger, emphasizing his administration’s efforts to assess its potential impact on the state. According to the Washington Post, Green assured that the merger would preserve local union jobs and expand access to mainland destinations for Hawaiians. “The merger will greatly increase the number of destinations across North America that Hawaiians can reach nonstop or with a stopover from the islands,” Green said.
Source: The Washington Post
