The Department of Justice has recently announced its decision not to challenge the proposed acquisition of Hawaiian Airlines by Alaska Airlines as anticompetitive. This decision marks a significant milestone in the merger process, allowing the two airlines to move forward with their plans to close the $1.9 billion deal. The DOJ’s review highlighted the commitment of Alaska Airlines to maintain the Hawaiian Airlines brand, local jobs, and strong service for Hawaii consumers.
Regulatory Hurdles Still Ahead
While the DOJ has given its approval, there are still other regulatory hurdles and closing conditions that the airlines must address before finalizing the deal. This includes obtaining interim approval from the Transportation Department to operate under common ownership, as well as integrating their operations under a single operating certificate. Alaska Airlines plans to keep the Hawaiian Airlines brand distinct while running the two carriers as a merged airline with centralized scheduling, a single loyalty program, and interchangeable aircraft.
The approval of the merger received key support from the Hawaiian government, citing overwhelming consumer, employee, and community benefits that will result from the acquisition. The proposal also benefitted from the limited overlap between the airlines’ networks, with only 12 markets where Alaska and Hawaiian compete. Hawaii Gov. Josh Green expressed his excitement for the merger, emphasizing the expanded options for North American destinations for Hawaii residents and the added value for HawaiianMiles members.
Under the Biden administration, the DOJ has taken a skeptical approach to airline mergers, as evidenced by its successful actions against JetBlue’s acquisition of Spirit Airlines and the separation of the American and JetBlue alliance in the New York area and Boston. However, the Alaska-Hawaiian merger received a different treatment, likely due to the support it garnered from the Hawaiian government and the minimal network overlap between the two airlines.
The approval of Alaska Airlines’ acquisition of Hawaiian Airlines by the Department of Justice represents a positive development for both companies and consumers. The commitment to maintain the Hawaiian Airlines brand and enhance services for Hawaii residents and travelers underscores the potential benefits of the merger. With regulatory hurdles still ahead, both airlines will need to navigate the remaining challenges to successfully close the deal and begin operating as a unified entity.