The merger between Alaska Airlines and Hawaiian Airlines is one step closer to reality after the Department of Justice (DOJ) allowed its review period to expire without taking any action.
The process for the proposed merger will now be allowed to move forward, according to Alaska Airlines, and is next subject to approval from the Department of Transportation (DOT). Reuters reported the DOT said Tuesday it was reviewing the potential acquisition.
“This is a significant milestone in the process to join our airlines,” Alaska Airlines said in a statement. “During the DOJ’s review, Alaska worked closely with the Hawai‘i Attorney General to reinforce and expand upon our commitments for the future of Hawaiian Airlines and to Hawai‘i consumers. These include plans to maintain the Hawaiian Airlines brand and local jobs and continue providing strong service between, to, and from the Islands.”
Alaska first announced its plans to purchase Hawaiian Airlines late last year in a sale that was valued at about $1.9 billion. However, unlike some other mergers, Alaska said it planned to maintain both the Alaska Airlines and Hawaiian Airlines brands and integrate both into a “single operating platform.”
Following the DOJ’s decision not to take any action to block the merger, Hawaii Gov. Josh Green said the joining of the two airlines would create a “stronger company” and ultimately “offer more travel options for Hawai‘i residents and local businesses.”
“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… I appreciate the DOJ’s strong consideration of Hawai‘i’s unique needs during its review of the proposed merger,” Green said in a statement. “I look forward to this merger proceeding and the overwhelming consumer, employee and community benefits that will result from it.”
While this merger has been allowed to move forward, other proposed airline mergers haven’t been as lucky. Earlier this year, a federal judge blocked an anticipated merger between JetBlue and Spirit Airlines, ruling it was unlawful because it violated antitrust laws. Weeks later, the two airlines officially abandoned their merger plans.
And last year, a U.S. judge similarly ordered JetBlue and American Airlines to end their alliance, a decision JetBlue ultimately decided not to appeal.