Alaska Airlines and Hawaiian Airlines Merger Advances Without Antitrust Concerns

Alaska Airlines and Hawaiian Airlines Merger Advances

Alaska Airlines’ acquisition of Hawaiian Airlines has successfully navigated a significant milestone, as the airlines announced that the Justice Department concluded its review of the merger without raising any antitrust concerns. This approximately $1.9 billion deal marks the first major airline merger in nearly a decade, poised to enhance Alaska’s operations and solidify its status as the fifth-largest airline in the United States.

The combined entity will still remain relatively small compared to the four major airlines that dominate the U.S. market, with the merged company expected to control roughly half the market share of United Airlines.

The airlines have indicated their intention to hold off on further merger proceedings until they secure final approval from the Department of Transportation. This cautious approach reflects a desire to ensure compliance with regulatory standards and to address any potential concerns that may arise.

Governor Josh Green of Hawaii, a state that heavily relies on the services provided by Hawaiian Airlines, expressed his support for the merger. He commended the Justice Department for considering the needs of Hawaii during its review process. In a statement, he remarked, “I am confident that the union of these two airlines will result in a stronger company, offering more travel options for Hawai‘i residents and local businesses.”

This development is a significant achievement for both Alaska and Hawaiian Airlines, particularly in the current regulatory climate. Under the Biden administration, the Justice Department has adopted a stringent stance against substantial mergers and acquisitions. A notable example includes the recent abandonment of the merger plans between JetBlue Airways and Spirit Airlines, which was prompted by a successful lawsuit from the department aimed at preventing the deal due to concerns about maintaining competitive fare structures.