In December, Alaska Airlines and Hawaiian Airlines announced their plans to merge, arguing that they had no choice but to join forces in an industry where four major airlines – American, Delta, Southwest and United – account for 80 percent of the market.
NEW YORK, Aug. 20 (Xinhua) — Alaska Airlines and Hawaiian Airlines have cleared a major regulatory hurdle in their plan to combine their airline operations, according to Alaska Airlines.
“The nearly $2 billion deal, the first airline merger in nearly a decade, is expected to significantly expand travel options from Hawaii to the U.S. mainland and expand Alaska Airlines’ international presence,” The Washington Post said in its Tuesday report on the move.
A deadline for the Justice Department to file a lawsuit challenging the merger passed without any action being announced. Statements from Alaska Airlines and the governor of Hawaii said the deal had reached a major milestone. The Justice Department did not immediately respond to requests for comment, according to the report.
Alaska Airlines announced in a press release late Monday that the deadline for the U.S. Department of Justice to complete its regulatory investigation into the proposed merger of Alaska Airlines and Hawaiian Airlines had “passed.”
According to Alaska Airlines, the merger still needs to be approved by the Department of Transportation.
The announcement came as a surprise to some in the industry, as the Biden administration had promised to closely scrutinize mergers in already highly concentrated industries.
In December, the two airlines announced their plans to merge, arguing that they had no choice but to join forces in an industry where four major airlines – American, Delta, Southwest and United – account for 80 percent of the market.
In February, the Justice Department launched an investigation into the deal. The airlines had originally sought a decision by August 5, but agreed to an extension to August 15, according to a government statement. ■
