On June 21, 2023, Alaska Airlines and Hawaiian Airlines planes took off simultaneously from San Francisco International Airport (SFO) in San Francisco, California, USA.
Taifon Koskun | Anadolu Agency | Getty Images
Alaska Airlines Indicates plans to acquire Hawaiian Airlines Eight months after the two carriers announced a lawsuit to block the deal, the company has received approval from the U.S. Department of Justice but has not filed a lawsuit to block it. trade $1.9 billion deal Combined.
Both airlines must now obtain approval from the U.S. Department of Transportation before the deal can close. It’s unclear how long the process will take.
The merger would be the largest by a U.S. airline since Alaska merged with Virgin America eight years ago.
“The U.S. Department of Justice’s deadline to complete its regulatory investigation of the proposed merger of Alaska Airlines and Hawaiian Airlines under the Hart-Scott-Rodino Antitrust Improvements Act has expired,” Alaska Airlines said in a statement. This is an important milestone in joining our airline.”
The development comes after the Justice Department won a court ruling in January that blocked JetBlue Airways‘ Acquisition spirit airlines. Last year, the Justice Department won another lawsuit that canceled JetBlue Airways and American Airlines.
In the months before the two airlines announced the deal in December, Hawaiian faced a series of challenges, including Maui wildfirescompetition intensifies Southwest Airlinesand the slower recovery of travel to and from Asia following the Covid-19 pandemic.
Hawaiian has posted net losses in all but one quarter since the start of 2020, but executives recently said booking trends were improving. Shares of Hawaiian Airlines were up nearly 12% for the quarter through Monday, while most other airlines were down.
When the two airlines announced the deal in December, they said they would retain their respective airline brands but operate under a single platform, combining into a fleet of more than 360 aircraft covering more than 130 destinations.
The Justice and Transportation departments had no immediate comment Tuesday.
