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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. Two weeks ago, the Department of Justice (DOJ) extended its antitrust review period to end on August 15th (it was originally slated to end on August 5th). Now, it has been released that the DOJ will not challenge the merger and Alaska can move forward with its plans for acquisition.
The fifth largest US airline will soon operate a fleet of 365 narrow and widebody aircraft and reach 138 destinations through the combined networks. This will offer flyers access to more than 1,200 destinations globally through the oneworld Alliance. The plan is that the combination will build on the 90+ year legacies and cultures of the two airlines while preserving the brand legacies and loyalties they both hold.
The proposed combination remains subject to other closing conditions, including approval from the US Department of Transportation (DOT), but Alaska can move forward with all of its plans for a combined airline without any concessions (such as gates) being requested from the DOJ.
Hawaii’s Governor, Josh Green, released this statement:
Over the past several months, my administration and I have worked with the leadership of Alaska Airlines to carefully review the potential impacts of a consolidation and we insisted that any changes expand travel options for our residents and preserve union jobs.
Alaska has reinforced commitments to our state and will maintain the Hawaiian Airlines brand, preserve and grow union jobs in our Hawai‘i, as well as continue to provide crucial passenger and air cargo service to, from, and within the islands.
The merger will vastly expand the number of destinations throughout North America for Hawai‘i residents that can be reached nonstop or one-stop from the islands, and HawaiianMiles members will retain the value of their miles while gaining access to more destinations around the world.
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 — and will enhance competition across the U.S. airline industry.
I appreciate the DOJ’s strong consideration of Hawai‘i’s unique needs during its review of the proposed merger. I look forward to this merger proceeding and the overwhelming consumer, employee and community benefits that will result from it.”
With the DOJ not challenging the merger, a major step has been cleared. Now the airline will work through the remaining processes with the DOT before beginning to combine systems and processes. No timeline has been announced, but Hawaiian Airlines loyalty program will fold into Alaska’s and the combined carrier will operate under one operating certificate. Alaska Airlines’ executives will run the company based out of Seattle.
Anthony’s Take: It looked highly likely that the DOJ was going to allow this merger to happen. I’m just surprised that not a single concession was requested.
(Image Credits: Hawai’i Public Radio, Hawaiian Airlines, and Alaska 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.
