Alaska Airlines recently announced that its plan to acquire Hawaiian Airlines has successfully cleared the U.S. Justice Department. This approval came after an investigation period that did not result in any legal action to block the deal. Now, the two airlines await approval from the U.S. Transportation Department before the deal can officially close. The timeline for this approval process remains uncertain at this point.
This potential merger between Alaska Airlines and Hawaiian Airlines would mark the largest consolidation of U.S. carriers since Alaska’s acquisition of Virgin America eight years ago. The significance of this deal cannot be understated, as it signifies a major shift in the airline industry landscape.
Hawaiian Airlines has encountered various obstacles in the lead-up to this agreement, such as the Maui wildfires, heightened competition from Southwest Airlines, and the slow recovery of travel to and from Asia in the aftermath of the Covid-19 pandemic. Despite facing financial losses in recent quarters, Hawaiian Airlines has seen encouraging booking trends in recent times.
Following the announcement of the acquisition, Hawaiian Airlines’ shares have experienced a notable increase of almost 12% this quarter, contrasting with the decline seen in most other airline companies’ shares. This positive market response suggests that investors are optimistic about the potential benefits of this merger.
Future Prospects
In December, Alaska Airlines and Hawaiian Airlines disclosed their intention to maintain each airline’s individual brand identity while operating under a unified platform. This partnership would consolidate their fleets into a combined force of over 360 airplanes serving more than 130 destinations. As the airlines navigate the final stages of regulatory approval, all eyes will be on the seamless integration of these two industry giants.
Overall, the successful clearance of the U.S. Justice Department’s review represents a pivotal moment in the journey towards this significant merger. While challenges undoubtedly lie ahead, the potential synergies and growth opportunities presented by this acquisition could redefine the competitive landscape of the airline industry for years to come.