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Merger with Hawaiian Airlines is being examined by the US Department of Justice

Merger with Hawaiian Airlines is being examined by the US Department of Justice

This article is about a developing story. Check back with us often as we will add more information as it becomes available.

Summary

  • The US Department of Justice’s investigation deadline has expired; an important milestone for the merger of Alaska and Hawaii has been reached.
  • There is a commitment to maintaining the Hawaiian Airlines brand, preserving local jobs and improving travel opportunities.
  • Governor Green supports the merger, emphasizing the benefits for consumers, workers and communities.



The planned merger of US airlines Alaska Airlines and Hawaiian Airlines has reached an important milestone: the deadline for the US Department of Justice (DOJ) regulatory investigation has passed. Although much work is still needed to complete the transaction, this is seen as an important step towards combining the two airlines.


A major hurdle overcome

Alaska Airlines announced today that the investigation period granted under the HSR Act has expired, but the proposed merger remains subject to customary closing conditions.

N938AK Alaska Airlines Boeing 737 MAX 9

Photo: Vincenzo Pace | Easy flying


Related

Judge dismisses lawsuit blocking Alaska Airlines’ $1.9 billion Hawaii deal

A group of passengers tried to sue the airlines because they feared a merger would “reduce competition.”

This includes approval of a preliminary waiver request by the U.S. Department of Transportation (DOT). Once approved, the two airlines can proceed with the integration. Alaska Airlines (Alaska) added:

“Throughout the Department of Justice’s review, Alaska worked closely with the Hawaii Attorney General to strengthen and expand our commitment to the future of Hawaiian Airlines and to Hawaii’s customers. This includes plans to preserve the Hawaiian Airlines brand and local jobs and to continue to provide strong service between, to and from the islands.”

Hawaiian Airlines Boeing 787-9 departing from LAS shutterstock_2443955163

Photo: christopheronglv | Shutterstock


This willingness to cooperate was also reiterated in a statement from Hawaii Governor Josh Green’s office. Green said he and his administration have worked with Alaska Airlines leadership over the past few months to carefully consider the potential impact of consolidation. Green stressed that any changes should expand travel options for residents and preserve unionized jobs.

“Alaska has reaffirmed its commitment to our state and will uphold the Hawaiian Airlines brand, maintain and grow union jobs in our Hawaii, and continue to provide essential passenger and air cargo service to, from and within the islands. 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.”

A clear recommendation from the governor

Governor Green thanked the Department of Justice for taking Hawaii’s unique needs into account when reviewing the proposed merger and concluded with this unqualified approval:


“I look forward to this merger process and the overwhelming benefits it will bring to consumers, workers and the community.”

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A merger will bring together two great loyalty programs – as part of oneworld.

The merger will significantly increase the number of destinations across North America that Hawaiians can reach nonstop or with a stopover from the islands. The deal also allows HawaiianMiles members to retain the value of their miles while gaining access to more destinations worldwide.

Alaska E175 in flight by Markus Mainka from Shutterstock 169

Photo: Markus Mainka | Shutterstock


Both the governor’s office and Alaska were quick to announce the news, but it’s only a matter of hours since the required time for the Justice Department’s investigation expired. In the next few days, we’ll likely hear a lot more about the next steps Alaska and Hawaiian Airlines need to take, and perhaps a tentative timeline for the merger.

Alaska said the first step is to obtain approval from the U.S. Department of Transportation for the temporary waiver request. Once that hurdle is cleared, the integration of the two airlines can fully move forward. Alaska said this includes bringing Hawaiian Airlines guests and employees into the Alaska Air Group, as well as expanding benefits and choices for customers throughout Hawaii, the Asia-Pacific region, the continental United States and globally.

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