Alaska Hawaiian Merger Clears DOJ Review: What Happens Next?

20.08.2024 - 16:01 / skift.com / Josh Green / Hawaiian Airlines / Gordon Smith

Alaska Airlines and Hawaiian are one step closer to gaining final approval for their proposed merger. Following two last-minute extensions in recent days, the review period for the U.S. Department of Justice (DOJ) to complete its regulatory investigation has ended.

In a statement, Alaska described the expiry of the DOJ deadline as “a significant milestone in the process to join our airlines.” It noted that as part of the DOJ’s review, the airline worked closely with the Hawaii Attorney General “to reinforce and expand upon our commitments for the future of Hawaiian Airlines and to Hawaii consumers.”

Hawaii Governor Josh Green added: “I appreciate the DOJ’s strong consideration of Hawaii’s unique needs during its review of the proposed merger. I look forward to this merger proceeding and the overwhelming consumer, employee, and community benefits that will result from it.”

Since the $1.9bn merger announcement in December 2023, leaders from the two companies have been on a charm offensive to highlight how beneficial the upcoming ‘two brands, one carrier’ system could be for travelers.

To help win support for the deal, Alaska previously said it would maintain the Hawaiian Airlines brand and commit to providing inter-island connectivity. Members of the HawaiianMiles program will also retain the value of their loyalty points. 

Green said the combined company will expand travel options for residents while preserving local jobs. The governor also claimed it will enhance competition across the U.S. airline sector. 

The DOJ developments are not the end of the formal regulatory process. The proposed merger is still subject to approval from the Department of Transportation (DOT). While no two cases are the same, historically, DOT approval can quickly follow DOJ decisions.

Alaska says after the DOT nod, it will “complete work to close the transaction, and proceed with integrating the two companies, welcoming Hawaiian Airlines guests and employees into Alaska Air Group.”

If completed as planned, the deal will cement Alaska’s place as the fifth-largest carrier by revenue in the United States. It also offers the chance for the Seattle-based carrier to venture far beyond the shores of the West Coast and into Asia-Pacific, tapping into Hawaiian’s fleet of long-haul widebody planes.

The dramatic collapse of the JetBlue and Spirit merger in January cast a shadow on the deal. If realized, the $3.8bn partnership would have created the fifth-largest airline in the country. Ultimately, it was thrown out by a judge, making it the first time in nearly 20 years that an airline merger had been blocked in the United States.

On balance, fears over Alaska’s position in the West Coast-Hawaii market and a possible monopoly didn’t