Alaska Air, Hawaiian deal advances as DOJ ends antitrust review

Investing.com -- Alaska Airlines (NYSE:ALK ) and Hawaiian Airlines have cleared a major hurdle in their proposed merger as the U.S. Department of Justice (DOJ) has concluded its antitrust review without raising objections. This brings the two carriers closer to combining their operations.

“The time period for the U.S. Department of Justice to complete its regulatory investigation of the proposed combination of Alaska Airlines and Hawaiian Airlines under the HSR Act has expired,” Alaska Airlines said in a statement on Monday. 

“This is a significant milestone in the process to join our airlines,” they added. 

While the DOJ’s green light is a major step, the deal is still contingent upon approval from the U.S. Department of Transportation (DOT). 

Both airlines have expressed confidence in securing the necessary permits and have outlined plans for maintaining Hawaiian Airlines’ brand, preserving jobs, and expanding service options for Hawaii residents.

“The merger will vastly expand the number of destinations throughout North America for Hawai‘i residents that can be reached nonstop or one-stop from the islands, and HawaiianMiles members will retain the value of their miles while gaining access to more destinations around the world,” said Hawai‘i Governor Josh Green.

With the DOJ review concluded, the next major step is obtaining approval from the DOT for an interim exemption application. 

Once that approval is secured, the merger process can move forward to close the transaction, integrate the two airlines, and deliver on the promises made to consumers, employees, and communities in Hawai‘i and beyond.

The combined airline is expected to offer expanded domestic and international connectivity, benefiting both residents and tourists.

Source: Investing.com