Alaska Airlines announced Monday that its planned merger with Hawaiian Airlines had cleared a regulatory hurdle from the U.S. Department of Justice. Just days earlier, the airline had agreed to an extension of the review period for the $1.9 billion deal.
The announcement sent Hawaiian’s stock price up nearly 9% in premarket trading Tuesday, while Alaska’s shares were flat.
“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 HSR Act has expired,” Alaska Airlines said in a statement on its website.
The company added that it is now waiting for the next steps with the U.S. Department of Transportation (DOT).
Alaska Airlines, which announced the merger last year, agreed last week to extend the review period for the U.S. Department of Justice’s planned takeover of Hawaiian Holdings.
“Today, the proposed merger of Alaska Airlines and Hawaiian Airlines reached an important milestone. The regulatory review period for the U.S. Department of Justice has expired,” said Hawaii Governor Josh 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.”
Mergers and acquisitions in the airline industry are subject to strict scrutiny by regulators. Earlier this year, a federal judge blocked JetBlue Airways’ planned $3.8 billion takeover of ultra-low-cost carrier Spirit Airlines.
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