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Back in December, I wrote about Alaska Airlines entering into a definitive agreement to buy Hawaiian Airlines. The two airlines would remain independent brands post acquisition, but would combine loyalty programs. Now, the Department of Justice (DOJ) has extended its antitrust review period to end on August 15th (it was originally slated to end today).
The fifth largest US airline would expand to operate a fleet of 365 narrow and widebody aircraft and reach 138 destinations through the combined networks. This would also offer flyers access to more than 1,200 destinations globally through the oneworld Alliance. This combination would build on the 90+ year legacies and cultures of the two airlines while preserving the brand legacies and loyalties they both hold.
Alaska Airlines CEO, Ben Minicucci, commented on the merger during the airline’s second-quarter earnings call:
[Alaska is] maintaining close and transparent communication with the DOJ as they finalize their review process.”
Under the combined company, Honolulu’s Daniel K. Inouye International Airport (HNL) would become a key hub with expanded service for residents of Hawaii to the Continental US as well as new connections to Asia and throughout the Pacific for travelers across the US. The DOJ has made it clear that it wants to keep competition in market. This deal would create dominance within a specific geography and reduce competitiveness. We’ll soon know what the DOJ thinks and if concessions need to be made in this case.
Anthony’s Take: The $1.9 billion acquisition by Alaska Airlines has faced some issues. These range from the precedent set by blocking the merger between JetBlue and Spirit to a lawsuit by a Hawaiian investor who objected to the merger. An extension does not mean that the merger is off, but means that we need to wait as the DOJ continues its review.
(Image Credits: Alaska Airlines and Hawaiian Airlines.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
