Alaska Airlines' proposed $1.9 billion acquisition of Hawaiian Airlines has cleared a significant hurdle as the period for the U.S. Department of Justice (DOJ) to complete its regulatory investigation has expired.
The merger now requires approval from the U.S. Department of Transportation (DOT) of an interim exemption application.
The big win comes after a consumer lawsuit to block the merger was thrown out by a U.S. judge.
"The time period for the U.S. Department of Justice (DOJ) to complete its regulatory investigation of the proposed combination of Alaska Airlines and Hawaiian Airlines under the HSR Act has expired. This is a significant milestone in the process to join our airlines," Alaska said in a statement.
"During the DOJ¡¯s review, Alaska worked closely with the Hawaii Attorney General to reinforce and expand upon our commitments for the future of Hawaiian Airlines and to Hawaii consumers. These include plans to maintain the Hawaiian Airlines brand and local jobs and continue providing strong service between, to, and from the Islands."
"The proposed combination remains subject to other customary closing conditions, including approval from the U.S. Department of Transportation (DOT) of an interim exemption application," the airline continued. "Following that step, we will complete work to close the transaction, and proceed with integrating the two companies, welcoming Hawaiian Airlines guests and employees into Alaska Air Group, and expanding benefits and choice for consumers throughout Hawai¡®i, the Asia-Pacific region, continental United States and globally."
Hawaiian Airlines flight. (Photo via Hawaiian Airlines)
Hawaii Governor Josh Green said he looks forward to the merger proceeding in a statement issued Monday.
"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," said Green.
"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¡ªand will enhance competition across the U.S. airline industry"
The milestone for Alaska and Hawaiian in their attempt to combine comes just seven months after the DOJ successfully blocked a $3.8 billion merger between JetBlue and Spirit Airlines.
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