Hawaiian – Alaska merger awaiting next steps after review period passes
The US Department of Justice (DOJ)’s review period for the provisional merger between Alaska Airlines and Hawaiian Airlines has expired, with the former having now applied to the US Transportation Department to acquire Hawaiian for $1.9 billion.
“The time period during which the parties were prohibited from closing under the HSR Act has expired. The government’s review is ongoing,” clarified Alaska, noting that the proposed merger remains subject to customary closing conditions including approval from the US Department of Transportation (DOT).
The review period had originally been set to expire on 5 August but was subsequently extended to the 15 August before being pushed back one more time; allowing the DOJ to assess antitrust implications of the proposed merger.
Following approval from the US DOT of an interim exemption application, Alaska intends to “complete work to close the transaction, and proceed with integrating the two companies”.
Alaska and Hawaiian first announced their “definitive agreement” to merge back in December 2023, expanding the fifth largest US airline to a fleet of 365 aircraft and “[preserving] both beloved brands on a single operating platform”. Under the merger, Alaska will acquire Hawaiian for a transactional value of approximately $1.9 billion, including $0.9 billion of net debt.
State of Hawaii Governor Josh Green commented: “Alaska has reinforced commitments to our state and will maintain the Hawaiian airlines brand, preserve and grow union jobs in our Hawai’i, as well as continue to provide crucial passenger and air cargo service. He added his confidence that “a stronger company will emerge and offer more travel options for Hawai’i residents and local businesses”.
