Summary
- The DOJ has until August 5, 2024, to decide on the Alaska-Hawaiian merger.
- Hawaiian Airlines and Alaska Airlines certified substantial compliance triggering a 90-day waiting period.
- The merger plans include Hawaiian Airlines joining Alaska Air Group and expanding the flight options offered.
The United States Department of Justice (DOJ) has until August 5, 2024, to determine whether it will oppose the merger between Alaska Airlines and Hawaiian Airlines, according to an SEC filing released by both airlines on May 7, 2024.
The news follows the completion of a “second request” from the DOJ for both airlines to submit documents and information regarding their $1.9 billion merger deal. This compliance initiated the 90-day waiting period for finalizing the merger agreement. If the DOJ concludes its investigation before the waiting period expires, the merger could potentially be approved sooner. In the SEC filing, Hawaiian Airlines said:
Hawaiian and Alaska certified substantial compliance with the Second Request. The certification of substantial compliance triggers the start of the 90-day period described in the prior paragraph. This period expires on August 5, 2024.
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The DOJ started reviewing the Alaska and Hawaiian merger in early February 2024. The DOJ initially requested information and documents from Hawaiian and Alaska on February 7, 2024, to review the deal. Subsequently, a “second request” for additional information was sent on March 27, 2024.
More details about the merger
In late December 2023, Alaska Airlines and Hawaiian Airlines unveiled plans for a merger. Under the plan, Alaska Air Group, the parent company of Alaska Airlines, is set to acquire Hawaiian Airlines.
Under the agreement, Hawaiian Airlines will join Alaska Air Group following the merger. This will result in a combined fleet of 385 aircraft spanning three airlines: Alaska Airlines, Horizon Air, and Hawaiian Airlines. The new Alaska Air Group will offer an additional 2 million premium seats, including first-class and business seating with extra legroom. In addition, as Alaska Airlines is part of the oneworld alliance, Hawaiian Airlines will also become an alliance member.
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In May 2024, shareholders have given their approval for the merger. Nonetheless, it is still being evaluated by the Department of Justice. Both airlines have entered into a timing agreement with the DOJ to provide necessary information, which is a crucial stage in the process.
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While the airlines are hopeful, the outcome is not guaranteed. It is worth noting that the merger between Spirit Airlines and JetBlue was halted due to anti-competitive concerns and ultimately abandoned in early 2024.
The US Department of Justice (DOJ), which opposed the merger, determined that if the two airlines had combined, consumers in the US would have been negatively affected. Attorney General Merrick Garland hailed the decision as a win for millions of travelers, asserting that it would have led to increased ticket prices and reduced options if the merger had been allowed.
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