Alaska-Hawaiian airlines merger moves forward following DOJ review

The proposed merger of Alaska Airlines and Hawaiian Airlines moves forward as the regulatory review period for the U.S. Department of Justice has ended and is now being looked at by the U.S. Department of Transportation.

The “important milestone” brings the merger closer to reality as DOT looks at the airlines’ interim exemption application.

According to Alaska officials, the airline worked closely with the Hawai‘i Attorney General during the DOJ’s review to reinforce and expand upon its commitments for the future of Hawaiian Airlines and to Hawai‘i consumers.

“These include plans to maintain the Hawaiian Airlines brand and local jobs and continue providing strong service between, to, and from the Islands,” Alaska officials stated.

Alaska reached the deal in December to purchase Hawaiian Airlines for approximately $1.9 billion. Alaska Air Group, Inc. will acquire the airline for $18 per share cash. Alaska Air will also take on Hawaiian’s $0.9 billion net debt.

“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,” said Gov. Josh Green in a statement Monday. “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.”

Following the review and interim exemption application, Alaska Airlines says it will complete work to close the transaction, and proceed with integrating the two companies.

Merging the two airlines will make Alaska the fifth largest U.S. airline with a fleet of 365 narrow and wide-body airplanes enabling guests to reach 138 destinations through the combined networks and more than 1,200 destinations through the oneworld Alliance.

“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,” Green said. “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.”