The US Transportation Department is examining Alaska Airlines' proposed $1.9 billion acquisition of Hawaiian Airlines, which recently cleared a key review by the Justice Department. The acquisition, involving the consolidation of the two airlines under a single certificate, is subject to approval based on its public interest. Alaska Airlines, the fifth largest domestic carrier, and Hawaiian Airlines, the tenth largest, filed a transfer application as part of this merger. Following the Justice Department's clearance, Hawaiian Airlines' shares surged by 11.5% in premarket trading, while Alaska Airlines' shares rose by 0.5%.
Hawaii's Governor Josh Green highlighted that the merger would significantly enhance direct flight options for Hawaii residents across North America. The deal faced legal challenges earlier, including a dismissed lawsuit that alleged potential route reductions and price increases. This review is part of broader scrutiny faced by aviation mergers, with recent high-profile cases including JetBlue Airways' blocked acquisition of Spirit Airlines.
