Alaska Airlines Clears Major Hurdle in $1.9 Billion Acquisition of Hawaiian Airlines

Alaska Airlines is advancing towards completing its $1.9 billion acquisition of Hawaiian Airlines after the U.S. Department of Justice (DOJ) chose not to challenge the deal.

Announced in December, the merger will see Hawaiian become a wholly owned subsidiary of Alaska, maintaining its brand and jobs.

The DOJ’s review period expired on August 20 without objections, a notable development as the Biden administration has previously opposed similar consolidation efforts in the airline industry. The merger is also subject to approval from the Department of Transportation, which Alaska and Hawaiian are addressing.

Hawaiian Airlines’ shareholders approved the acquisition in February, and a recent lawsuit attempting to block the deal on competition grounds was dismissed earlier this month. The merger aims to expand travel options and cargo services, enhancing competition and destination reach for Hawaii residents.

The combined airline will operate an estimated 365 aircraft, including a planned introduction of ten converted freighters by Hawaiian Airlines to bolster its cargo capacity. Alaska Airlines has committed to preserving Hawaiian’s brand and services, with CEO Ben Minicucci slated to lead the new entity, headquartered in Seattle.

Hawaii Governor Josh Green has expressed confidence that the merger will benefit local businesses and residents by increasing travel options and enhancing industry competition.

“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,” he says.