Skip to main content
Business

Runway clears for Alaska, Hawaiian Airlines merger after DOJ review expires


A proposed merger between Alaska Airlines and Hawaiian Airlines has flown past a review by the U.S. Department of Justice. The decision clears the runway for the first major airline merger since 2016.

Media Landscape

See who else is reporting on this story and which side of the political spectrum they lean. To read other sources, click on the plus signs below. Learn more about this data
Left 16% Center 68% Right 16%
Bias Distribution Powered by Ground News

The DOJ seemingly decided against challenging Alaska’s $1.9 billion bid to acquire Hawaiian Airlines after the review period expired the morning of Tuesday, Aug. 20. The merger still faces approval from the Department of Transportation. In a filing with the Securities and Exchange Commission, Alaska said there are still issues that need to be addressed before that approval. 

“This is a significant milestone in the process to join our airlines,” Alaska Airlines said in a statement about the expiring DOJ review period.

QR code for SAN app download

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

Instead of becoming one company under a single brand, both names will remain intact. Alaska said it is committed to maintaining the Hawaiian brand, jobs and continuing service between, to and from the islands. 

The airline industry has become more and more consolidated in recent decades but there hasn’t been a major airline merger since Alaska acquired Virgin America for $2.6 billion in 2016.

The Justice Department has successfully put the brakes on big airline acquisitions in recent years. It stopped JetBlue from buying Spirit Airlines and halted a proposed partnership between JetBlue and American for service in the Northeast. 

On Aug. 13, a federal judge in Hawaii dismissed a consumer lawsuit to stop this merger on claims it would decrease routes while increasing prices. 

While the move will increase Alaska’s market share, the combined companies will still be the fifth largest U.S. carrier behind American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.

Tags: , , , , , , , , , , , , , ,

Simone Del Rosario: A merger between airlines that offer service to the 49th and 50th states is closer to becoming a reality.

It’s rare to see big mergers go unchallenged these days by the Biden administration. That said, the Justice Department will seemingly not challenge Alaska Air’s bid to scoop up Hawaiian Airlines after a review period expired after midnight Tuesday morning. The buyout is valued at around $1.9 billion dollars.

The merger, which would combine North America’s sixth and sixteenth largest airlines by passengers carried, still faces approval by the Department of Transportation. A regulatory filing with the SEC Tuesday said there are still issues that need to be addressed before getting the deal approved.

But after escaping DOJ scrutiny, Alaska Air said in a statement, “This is a significant milestone in the process to join our airlines.”

Instead of becoming one company under a single name, both brands will remain intact if the merger is completed. Alaska emphasized its commitment to maintaining the Hawaiian brand, jobs and continuing service between, to and from the islands.

Last week a federal judge in Hawaii dismissed a consumer lawsuit to stop the merger that claimed it would cut routes and raise prices.

If approved, it will be the first major merger in the industry since Alaska bought Virgin America for $2.6 billion in 2016.

The DOJ previously succeeding in stopping JetBlue from acquiring Spirit Airlines. It also put the kibosh on a proposed partnership between JetBlue and American on Northeast service.

Despite increasing market share, an Alaska-Hawaiian combo would be the 5th largest U.S. carrier behind American, Delta, Southwest and United.

For SAN, I’m SDR.