The Successful Merger of Alaska Airlines and Hawaiian Airlines

Alaska Airlines has announced that their plan to acquire Hawaiian Airlines has successfully cleared the U.S. Justice Department. This significant milestone comes after the end of the antitrust regulators’ investigation period, which did not result in a lawsuit to block the $1.9 billion agreement between the two carriers. Now, both airlines await approval from the U.S. Transportation Department before finalizing the deal, although the exact timeline for this process remains unclear.

If the combination of Alaska Airlines and Hawaiian Airlines is approved, it would mark the largest merger of U.S. carriers since Alaska’s merger with Virgin America eight years ago. This demonstrates the scale and impact of the proposed deal, which aims to combine resources, networks, and operations to create a stronger and more competitive entity in the airline industry.

Leading up to the merger announcement in December, Hawaiian Airlines encountered various challenges, including the Maui wildfires, increased competition from Southwest Airlines, and the slower recovery of travel to and from Asia due to the Covid-19 pandemic. Despite facing net losses in most quarters since the beginning of 2020, Hawaiian Airlines has seen positive booking trends recently, reflected in a nearly 12% increase in share value this quarter compared to other airlines.

Both Alaska Airlines and Hawaiian Airlines have expressed their commitment to maintaining each carrier’s brand identity while operating under a unified platform post-merger. With a combined fleet of over 360 airplanes serving more than 130 destinations, the merger aims to create synergies, improve operational efficiencies, and enhance the overall customer experience for passengers of both airlines.

The successful clearance of the merger between Alaska Airlines and Hawaiian Airlines by the U.S. Justice Department marks a significant step towards creating a more robust and competitive player in the airline industry. By overcoming regulatory hurdles and addressing operational challenges, the two carriers are poised to unlock new opportunities for growth, expansion, and success in the evolving aviation landscape.