A proposed merger between Alaska Airlines and Hawaiian Airlines has flown past a review by the U.S. Department of Justice. The decision clears the runway for the first major airline merger since 2016.
The DOJ seemingly decided against challenging Alaska’s $1.9 billion bid to acquire Hawaiian Airlines after the review period expired the morning of Tuesday, Aug. 20. The merger still faces approval from the Department of Transportation. In a filing with the Securities and Exchange Commission, Alaska said there are still issues that need to be addressed before that approval.
“This is a significant milestone in the process to join our airlines,” Alaska Airlines said in a statement about the expiring DOJ review period.
Instead of becoming one company under a single brand, both names will remain intact. Alaska said it is committed to maintaining the Hawaiian brand, jobs and continuing service between, to and from the islands.
The airline industry has become more and more consolidated in recent decades but there hasn’t been a major airline merger since Alaska acquired Virgin America for $2.6 billion in 2016.
The Justice Department has successfully put the brakes on big airline acquisitions in recent years. It stopped JetBlue from buying Spirit Airlines and halted a proposed partnership between JetBlue and American for service in the Northeast.
On Aug. 13, a federal judge in Hawaii dismissed a consumer lawsuit to stop this merger on claims it would decrease routes while increasing prices.
While the move will increase Alaska’s market share, the combined companies will still be the fifth largest U.S. carrier behind American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.
