Alaska Airlines’ acquisition of Hawaiian clears key antitrust review
Alaska Airlines’s acquisition of Hawaiian Airlines cleared a major hurdle on Monday, after the airlines said the Justice Department ended a review of the merger without challenging it on antitrust grounds. The approximately $1.9b deal, the first major U.S. airline merger in nearly a decade, is set to expand Alaska’s operation and solidify its position as the country’s fifth-largest airline. The combined company would still be small relative to the four large airlines that dominate U.S. air travel, commanding roughly half the market share of United Airlines. The airlines said they would wait to proceed with the merger until receiving final approval from the Department of Transportation. Gov. Josh Green of Hawaii, which relies heavily on Hawaiian Airlines, praised the deal and thanked the Justice Department for taking the state’s needs into account in its review. “I am confident that by the joining of these two airlines, a stronger company will emerge and offer more travel options for Hawai‘i residents and local businesses,” he said in a statement. The milestone reached on Tuesday is a coup for Alaska and Hawaiian, which succeeded where others failed. Under President Biden, the Justice Department has taken a strong stand against big mergers and acquisitions. JetBlue Airways and Spirit Airlines this year abandoned their plans to merge after the department successfully sued to prevent the deal, citing Spirit’s low fares among other things. The Transportation Department said in a statement that it was reviewing Alaska’s acquisition of Hawaiian but that it would only grant approval “if it is in the public interest.” It is not clear how long it would take the department to complete its review. When Alaska and Hawaiian announced the deal in December, Alaska’s CE, Ben Minicucci, said the combination would help his airline grow by expanding its presence in tourist destinations and to Asia, where it currently does not fly. It will also give Alaska access to more planes and pilots and other skilled workers.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-08-21/oneworld/alaska-airlines2019-acquisition-of-hawaiian-clears-key-antitrust-review
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Alaska Airlines’ acquisition of Hawaiian clears key antitrust review
Alaska Airlines’s acquisition of Hawaiian Airlines cleared a major hurdle on Monday, after the airlines said the Justice Department ended a review of the merger without challenging it on antitrust grounds. The approximately $1.9b deal, the first major U.S. airline merger in nearly a decade, is set to expand Alaska’s operation and solidify its position as the country’s fifth-largest airline. The combined company would still be small relative to the four large airlines that dominate U.S. air travel, commanding roughly half the market share of United Airlines. The airlines said they would wait to proceed with the merger until receiving final approval from the Department of Transportation. Gov. Josh Green of Hawaii, which relies heavily on Hawaiian Airlines, praised the deal and thanked the Justice Department for taking the state’s needs into account in its review. “I am confident that by the joining of these two airlines, a stronger company will emerge and offer more travel options for Hawai‘i residents and local businesses,” he said in a statement. The milestone reached on Tuesday is a coup for Alaska and Hawaiian, which succeeded where others failed. Under President Biden, the Justice Department has taken a strong stand against big mergers and acquisitions. JetBlue Airways and Spirit Airlines this year abandoned their plans to merge after the department successfully sued to prevent the deal, citing Spirit’s low fares among other things. The Transportation Department said in a statement that it was reviewing Alaska’s acquisition of Hawaiian but that it would only grant approval “if it is in the public interest.” It is not clear how long it would take the department to complete its review. When Alaska and Hawaiian announced the deal in December, Alaska’s CE, Ben Minicucci, said the combination would help his airline grow by expanding its presence in tourist destinations and to Asia, where it currently does not fly. It will also give Alaska access to more planes and pilots and other skilled workers.<br/>
