Alaska Airlines has recently announced that its plan to acquire Hawaiian Airlines has cleared the U.S. Justice Department. This comes after an eight-month period where antitrust regulators investigated the deal. The absence of a lawsuit to block the deal signals a significant milestone in the process of combining the two carriers.
Before the deal can officially go through, the airlines must now seek approval from the U.S. Transportation Department. The timeline for this approval is not yet determined, leaving uncertainty around the closing date of the merger. This acquisition is expected to be the largest merger of U.S. carriers since Alaska merged with Virgin America eight years ago.
Challenges Faced
Leading up to the agreement, Hawaiian Airlines encountered various challenges. These challenges included the Maui wildfires, heightened competition from Southwest Airlines, and the slow recovery of travel to and from Asia following the Covid-19 pandemic. Despite these obstacles, Hawaiian Airlines has seen improvements in booking trends, with shares up almost 12% this quarter, unlike many other airlines whose shares have dropped.
When the deal was first announced in December, both Alaska Airlines and Hawaiian Airlines stated that they planned to maintain each carrier’s brand while operating under a unified platform. This merger would result in a fleet of over 360 airplanes and expand their coverage to more than 130 destinations.
Overall, the acquisition of Hawaiian Airlines by Alaska Airlines marks a significant development in the airline industry. Despite the challenges faced by Hawaiian Airlines, the positive outlook on booking trends and shares indicate a potential for growth and success post-merger. The regulatory approval process with the U.S. Transportation Department will be the next crucial step in finalizing this deal.
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