Hawaiian Airlines and Alaska Airlines are one step closer to completing a $1.9 billion deal that would be the largest consolidation of any U.S. airline since 2016.
The deadline for regulatory review by the U.S. Department of Justice passed without any hiccups earlier this week, meaning the two companies have cleared the first major hurdle in their merger plans, which were first announced last December.
For the deal to move forward, it must pass review by the U.S. Department of Transportation – a common closing condition – which includes a request for a temporary waiver.
The Justice Department has long been skeptical of airline partnerships and recently blocked the planned merger of JetBlue and Spirit.
Although it is not yet clear how long the approval process might take, experts believe it could take years for the behind-the-scenes logistics to be sorted out.
Subject to remaining approvals, this would be the second acquisition for Alaska Airlines in the last decade after the company beat out JetBlue in a bidding war for Virgin America.
In the planned merger between Hawaii and Alaska, both airlines would remain and continue to operate under their current names.
Alaska Airlines statement on next steps for Hawaiian merger
In this Jan. 24, 2022, file photo, an Alaska Airlines plane flies past the tail of a United Airlines plane as it lands at Reagan National Airport in Arlington, Virginia.
Joshua Roberts/Reuters, FILE
“This is a significant milestone in the process of merging into our airlines,” the SeaTac, Washington-based airline said in a statement this week. “During the HSR (Hart–Scott–Rodino Antitrust Improvements Act) period, Alaska worked closely with the Hawaii Attorney General to reaffirm and expand our commitments to the future of Hawaiian Airlines and Hawaii consumers. This includes plans to maintain the Hawaiian Airlines brand and local jobs and to continue to provide strong service between, to and from the islands.”
The airline also said that potential next steps include “finishing work to close the transaction and proceeding with the integration of the two companies, bringing Hawaiian Airlines guests and employees into the Alaska Air Group and expanding benefits and choices for consumers throughout Hawaii, the Asia Pacific region, the continental United States and around the world.”
Hawaii governor comments on possible airline merger
A Hawaiian Airlines aircraft takes off next to an Alaska Airlines aircraft at Los Angeles International Airport (LAX) in Los Angeles on December 5, 2023.
Eric Thayer/Bloomberg via Getty Images, FILE
After the latest merger details were announced, Hawaii Governor Josh Green said in a statement that he and his staff had worked with Alaska Airlines management over the past few months “to carefully consider the potential impacts of consolidation. We have insisted that any changes expand travel options for our residents and preserve union 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,” he said. “The merger will significantly increase the number of destinations across North America that Hawaiians can reach nonstop or with a stopover from the islands, and HawaiianMiles members will retain the value of their miles while gaining access to more destinations around the world.”
Green added that he was “confident” that this merger would “provide more travel options for Hawaii residents and local businesses” and “increase competition throughout the U.S. airline industry.”
What a merger of Alaska and Hawaiian Airlines means for travelers
In this April 28, 2020, file photo, Hawaiian Airlines planes sit idle on the runway at Daniel K. Inouye International Airport in Honolulu.
Marco Garcia/Reuters, FILE
Travel experts at Going.com – formerly Scott’s Cheap Flights – commented on the potential deal and what it could potentially mean for customers.
“Competition between airlines is the main driver of low-cost flights. A merger of two airlines whose routes partially overlap would not result in more low-cost flights for customers, but to some extent fewer,” Katy Nastro, a spokeswoman for Going, told ABC News.
In addition, the team of experts assumes that certain markets could be more affected than others.
“The Justice Department did not ask for any concessions, which means Alaska could ultimately make some cuts on routes that are consistently underperforming, such as interisland routes,” she explained.
There is no official statement from the airline about when and where possible route changes would take place.
