There have been significant developments in the travel industry surrounding the proposed merger between Alaska Airlines and Hawaiian Airlines.
On Alaska Airlines’ official website, the company stated: “The deadline for the U.S. Department of Justice (DOJ) to complete its regulatory investigation of the proposed merger of Alaska Airlines and Hawaiian Airlines under the HSR Act has passed. This is an important milestone in the process of merging our airlines.”
The next big hurdle is now approval from the U.S. Department of Transportation (DOT) for a temporary waiver request. Alaska Airlines has explained how it has worked with Hawaii’s attorney general to address concerns and work to preserve Hawaiian Airlines’ brand, jobs and service. Once DOT approval is received in favor of the merger, the deal can be finalized.
In addition, Governor Josh Green released a statement on the official website of the Hawaiian government.
“Over the past few months, my administration and I have worked with Alaska Airlines leadership to carefully consider the potential impacts of a merger. We have insisted that any changes expand travel options for our residents and preserve unionized jobs. The merger will significantly increase the number of destinations across North America that can be reached nonstop or with a stopover from the islands for Hawaii residents. HawaiianMiles members will retain the value of their miles while gaining access to more destinations around the world. I am confident that the combination of these two airlines will create a stronger company that will provide more travel options for Hawaii residents and local businesses – and increase competition throughout the U.S. airline industry.”
Governor Josh Green, MD, via the Hawaii Governor’s Office
In related news from the airline industry, Elliott Investment Management has caused considerable turmoil at Southwest Airlines by seeking to replace 10 of the 15 board members and calling for the CEO to be fired. The hedge fund’s nominees include well-known figures such as former Virgin America CEO David Cush and former Air Canada CEO Robert Milton.
Despite an initial agreement to discuss potential solutions with Southwest, Elliott has decided to publicly announce its plans to reshuffle the board. Southwest has expressed its willingness to continue discussions with Elliott and is focused on improving financial performance, customer satisfaction and shareholder value. Detailed plans are to be presented at an upcoming investor day.
