Alaska Airlines and Hawaiian Airlines merger clears regulatory hurdle, will now be reviewed by DOT
The announcement boosted shares of Hawaiian Airlines by nearly 9%
Alaska Airlines flight from Hawaii to Alaska forced to turn around due to flooding
Water on an Alaska Airlines flight from Hawaii to Alaska entered the cabin from a flooded bathroom, crew tried to mop it up. (Credit: Dustin Parker/Facebook)
Alaska Airlines and Hawaiian Airlines just took one step closer to a merger, according to statements sent out on Monday.
The deal cleared a regulatory obstacle when "the time period for the U.S. Department of Justice to complete its regulatory investigation of the proposed combination of Alaska Airlines and Hawaiian Airlines under the HSR Act" expired, Alaska Airlines said in a statement on its website.
The announcement boosted shares of Hawaiian by nearly 9% in premarket trade on Tuesday, while Alaska's shares were flat. The merger is a $1.9 billion deal.
"Over the past several months, my administration and I have worked with the leadership of Alaska Airlines to carefully review the potential impacts of a consolidation and we insisted that any changes expand travel options for our residents and preserve union jobs," Hawaii Gov. Josh Green said in a press release.
331 SWISS INTERNATIONAL PASSENGERS GET STRANDED 20 HOURS IN KAZAKHSTAN AFTER PLANE GOES OFF RUNWAY
A Hawaiian Airlines jet taxies on to the runway at Phoenix Sky Harbor International Airport in Phoenix on Feb. 14, 2006. (KAREN BLEIER/AFP via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ALK | ALASKA AIR GROUP INC. | 52.42 | +0.12 | +0.23% |
| HA | NO DATA AVAILABLE | - | - | - |
The proposed airline combination is now subject to approval from the U.S. Department of Transportation.
"Following that step, we will complete work to close the transaction, and proceed with integrating the two companies, welcoming Hawaiian Airlines guests and employees into Alaska Air Group, and expanding benefits and choice for consumers throughout Hawai‘i, the Asia-Pacific region, continental United States and globally," Alaska Airlines said.
A Hawaiian Airlines airplane takes off near an Alaska Airlines airplane at Los Angeles International Airport in Los Angeles on Tuesday, Dec. 5, 2023. (Eric Thayer/Bloomberg via Getty Images / Getty Images)
An Alaska SkyWest Embraer E175LR aircraft departs from Los Angeles International Airport en route to San Francisco on May 5, 2024 in Los Angeles. (Kevin Carter/Getty Images)
Green said Alaska Airlines plans to maintain the Hawaiian Airlines brand, and "reinforced commitments" to preserve and grow union jobs in the Aloha State. He believes the merger would "expand the number of destinations throughout North America for Hawai‘i residents that can be reached nonstop or one-stop from the islands."
CLICK HERE TO READ MORE ON FOX BUSINESS
Mergers and acquisitions in the aviation industry have faced tough scrutiny from regulators. Earlier this year, a federal judge blocked JetBlue Airways' planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines.
Reuters contributed to this report.