In a significant turn of events, Alaska Airlines has passed a crucial milestone in its bid to acquire Hawaiian Airlines as antitrust regulators have given their approval for the merger. The Department of Justice refrained from deeming the merger as anticompetitive and did not impose any conditions on the deal, a move that bodes well for both airlines involved.
Next Steps for Alaska and Hawaiian
While the Department of Justice’s decision represents a major win for Alaska Airlines’ acquisition of Hawaiian Airlines, there are still a few steps left before the merger is officially complete. Both airlines must now await permission from the Department of Transportation (DOT) to operate under common ownership and finalize the transfer of Hawaiian’s international route authorities to Alaska. Additionally, integrating their operations into a single operating certificate is another task on the horizon.
Following the news of the DOJ’s approval, Alaska Airlines released a statement outlining its commitment to maintaining the Hawaiian Airlines brand and local jobs. The airline also plans to continue providing strong service to and from Hawaii, emphasizing its dedication to Hawaiian consumers. Alaska intends to keep the Hawaiian Airlines brand distinct while streamlining operations by implementing centralized scheduling, a single loyalty program, and interchangeable aircraft.
State Support and Limited Route Overlap
The state government’s backing of the merger likely influenced the Department of Justice’s decision to greenlight the deal. According to antitrust attorney Scott Wagner, the minimal route overlap between Alaska and Hawaiian, combined with both airlines being full-service carriers, set this merger apart from previous cases like the blocked JetBlue acquisition of Spirit. Alaska and Hawaiian share a small number of routes, with only a handful where they are the sole carriers, making their combination less concerning from a competition standpoint.
Despite expectations for the Department of Justice to impose certain conditions on the merger, the decision not to add any requirements caught some by surprise. Speculations were rife when the review period was extended multiple times, leading to theories about a negotiated agreement in the works. Moving forward, the DOT still has the power to introduce stipulations as part of its approval process. With the regulatory journey far from over, the airlines will need to navigate any potential conditions that may arise in the coming months.
As Alaska Airlines continues on its path to officially acquire Hawaiian Airlines, the approval from antitrust regulators marks a significant step forward in the merger process. With commitments to uphold the Hawaiian Airlines brand and service standards, Alaska is positioning itself for a successful integration of the two carriers. While uncertainties remain regarding potential regulations from the DOT, both airlines are optimistic about the future of their partnership and the opportunities that lie ahead in the ever-evolving airline industry.