Alaska and Hawaiian Airlines are one step closer to joining forces. The clock has run out on a Justice Department challenge and the deal now goes to the Transportation Department for approval.
The airlines announced their plans for the $1.9 billion merger in late 2023, and Justice Department planned to open an investigation into potential antitrust issues. But an eight-month time limit imposed by the Hart-Scott-Rodino Act has passed and the airlines say it's now up to the Transportation Department to rule on the merger.
If indeed they're right about that, it would qualify as a narrow escape. Justice has been quick to quash other airline mergers, including JetBlue and Spirit, as well as JetBlue and American.
“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 [Hart-Scott-Rodino] Act has expired,” Alaska Airlines said in a statement. “This is a significant milestone in the process to join our airlines.”
Hawaii Governor Dr. Josh Green has been a strong supporter of the merger.
“Over the past several months, my administration and I have worked with the leadership of Alaska Airlines to carefully review the potential impacts of a consolidation, and we insisted that any changes expand travel options for our residents and preserve union jobs,” Green said in a statement.
What happens now?
Alaska and Hawaiian Airlines are gearing up for Transportation's final decision. While it currently remains unclear when the department will offer its ruling, both airlines are continuing to prepare for the merger.
In statements from both Alaska Airlines and Dr. Green, the airlines say they still intend to keep the identity of two companies separate, while giving consumers more flight options across the country. If fully approved, the merger will offer consumers flight options on over 130 destinations.
“Alaska has reinforced commitments to our state and will maintain the Hawaiian Airlines brand, preserve and grow union jobs in our Hawaii, as well as continue to provide crucial passenger and air cargo service to, from, and within the islands,” Dr. Green said.
“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, and HawaiianMiles members will retain the value of their miles while gaining access to more destinations around the world.”