Alaska Air is one step closer to acquiring Hawaiian Airlines after the U.S. Department of Justice did not challenge the $1.9 billion deal, which the airline says will enable the company to provide better service to its travelers.
Alaska Airlines announced in December that it would pay $18 in cash for each Hawaiian share. The deal includes $900 million in Hawaiian Airlines debt.
The brands of both airlines would be retained after the merger, which is unique in an industry where, after decades of numerous corporate takeovers, only four major airlines dominate the US market.
Alaska and Hawaiian say there is little overlap on their routes and that the intention behind the merger is to give the new airline better competition against the country’s “Big Four”: American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.
Alaska Air and Hawaiian Holdings, the parent company of Hawaiian Airlines, said in regulatory filings with the U.S. Securities and Exchange Commission (SEC) on Tuesday that the Justice Department’s review deadline, which had already been extended several times, expired shortly after midnight.
The deal is still subject to approval by the Department of Transportation. Alaska and Hawaiian are working with Transportation on outstanding issues, according to the SEC filing.
Shares of Hawaiian Holdings Inc. rose more than 11 percent before the market opened on Tuesday. Shares of Alaska Air Group Inc. climbed 1.5 percent.
