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Alaska and Hawaiian Airlines move one step closer to merger

Alaska and Hawaiian Airlines move one step closer to merger

Alaska and Hawaiian Airlines are one step closer to merging. The deadline for a Justice Department challenge has passed and the deal will now go to the Department of Transportation for approval.

The airlines announced their plans for the $1.9 billion merger in late 2023, and the Justice Department planned to launch an investigation into possible antitrust violations. But the eight-month deadline set by the Hart-Scott-Rodino Act has passed, and the airlines say it is now up to the Transportation Department to decide on the merger.

If they are indeed right, it would be a narrow rescue. The courts have already quickly quashed other airline mergers, including JetBlue and Spirit and JetBlue and American.

“The deadline for the U.S. Department of Justice to complete its regulatory investigation of the proposed merger of Alaska Airlines and Hawaiian Airlines under the (Hart-Scott-Rodino) Act has passed,” Alaska Airlines said in a statement. “This is an important milestone in the process of merging our airlines.”

Hawaii Governor Dr. Josh Green is a strong supporter of the merger.

“Over the past few months, my administration and I have worked with Alaska Airlines leadership to carefully consider the potential impacts of consolidation. We have insisted that any changes expand travel opportunities for our citizens and preserve union jobs,” Green said in a statement.

What happens next?

Alaska and Hawaiian Airlines are preparing for the Department of Transportation’s final decision. While it is currently unclear when the department will announce its decision, both airlines are continuing to prepare for the merger.

In statements from Alaska Airlines and Dr. Green, the airlines say they continue to intend to keep the identities of the two companies separate while offering customers more flight options across the country. If fully approved, the merger will provide customers with flight options to over 130 destinations.

“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 services to, from and within the islands,” said Dr. Green.

“The merger will significantly increase the number of destinations across North America that Hawaiian residents can reach nonstop or with a stopover from the islands. HawaiianMiles members will retain the value of their miles while gaining access to more destinations around the world.”

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