This article is published in Aviation Week & Space Technology and is free to read until Aug 27, 2024. If you want to read more articles from this publication, please click the link to subscribe.
Alaska Airlines’ planned $1.9 billion acquisition of Hawaiian Airlines has cleared an important regulatory hurdle after the antitrust review period for the U.S. Department of Justice (DOJ) ended without a lawsuit to block the deal.
The two carriers, which announced their merger agreement last December, now await approval from the U.S. Transportation Department (DOT) before the deal can be finalized.
“This is a significant milestone in the process to join our airlines,” Alaska said late Aug. 19 in a statement. “The proposed combination remains subject to other customary closing conditions, including approval from the [DOT] of an interim exemption application.”
Alaska and Hawaiian first announced an agreement to merge on Dec. 3, 2023, expressing intent to retain both brands, with Hawaiian surviving as a wholly owned subsidiary of Alaska. The merger process kicked off in January, and the timeline for approval has been extended several times since.
The airlines complied with the DOJ's request for more detail on May 7, starting a 90-day waiting period for the review to conclude. They then agreed to two further requests from the DOJ to extend the deadline, the last of which has now passed without regulatory issues being raised.
Hawaii Gov. Josh Green welcomed the latest step in the process, saying that his administration has worked with Alaska to ensure the consolidation plan expands travel options, preserves union jobs and maintains the Hawaiian brand.
“The merger will vastly expand the number of destinations throughout North America for Hawaii residents that can be reached nonstop or one-stop from the islands,” Green says. “I am confident that by the joining of these two airlines, a stronger company will emerge and offer more travel options for Hawaii residents and local businesses—and will enhance competition across the U.S. airline industry.”
Alaska and Hawaiian say the combined entity will serve 54.7 million passengers annually and operate to 138 destinations, as well as providing access “to more than 1,200 destinations” through Alaska’s membership in the Oneworld alliance.
Analysis of data from OAG Schedules Analyser shows that Alaska is the fifth-largest airline in the U.S. domestic market during August 2024, accounting for 5.5% of all departure seats within the country. Hawaiian is the 10th-largest with a 1.2% capacity share. A combination will therefore create a group with about 6.7% of the market, maintaining Alaska’s position as the fifth-largest provider.
OAG data shows that Alaska and Hawaiian are offering a combined 317 domestic and international routes during August 2024. Direct competition exists in 12 markets.
The DOJ’s decision not to block the proposed deal comes after the department won a court ruling in January that blocked JetBlue Airways’ acquisition of Spirit Airlines, which was officially terminated in March. The DOJ also won a suit against American Airlines and JetBlue in 2023 that resulted in the breakup of their Northeast Alliance.
Related Content
