The proposed merger between Alaska Airlines and Hawaiian Airlines moved closer to fruition after the Department of Justice (DOJ) decided not to block it. The DOJ had been reviewing the $1.8 billion merger for potential antitrust issues but ultimately chose not to file a lawsuit before the end of the review’s waiting period.
With this significant step cleared, the merger now awaits approval from the Department of Transportation (DOT), though the timeline for this final approval remains uncertain.
Alaska Airlines expressed satisfaction with the DOJ’s decision, describing it as a significant milestone in the merger process. The airline also highlighted its collaboration with Hawaii’s Attorney General during the review to reinforce its commitments to maintaining the Hawaiian Airlines brand, preserving jobs, and sustaining interisland routes.
Alaska reiterated that these plans were initially shared when the merger was first announced in December.
The DOJ’s decision not to challenge the merger contrasts with its recent history of aggressively blocking airline mergers under the Biden administration. Notably, the DOJ successfully blocked JetBlue’s acquisition of Spirit Airlines earlier this year, citing concerns about reduced competition.
In contrast, the Alaska-Hawaiian merger is seen as less problematic due to the minimal overlap in their route networks, with only 3% of their routes overlapping and just 12 overlapping markets out of 1,400 daily flights.
The merger would create the fifth-largest airline in the U.S. by fleet size, operating 365 aircraft and servicing 138 destinations, including 29 international markets. Unlike the JetBlue-Spirit merger, which would have removed a low-cost carrier from the market, the Alaska-Hawaiian combination is not expected to reduce competition significantly.
Hawaiian Airlines, which has faced financial difficulties, particularly due to recent events such as the Maui wildfires and competition from Southwest Airlines, could benefit from the merger.
Support for the merger has been strong in Hawaii, with local politicians, including Governor Josh Green, endorsing the deal. They believe that the merger will strengthen the airline industry in Hawaii, offering more travel options for residents and businesses while enhancing overall competition in the U.S. airline industry. As the process moves forward, the DOT’s approval remains the final hurdle for the merger to proceed.
