The Associated Press reported today that a proposed merger of Alaska Air and Hawaiian Airlines has taken a step forward. The U.S. Department of Justice has decided not to challenge the $1 billion deal, and the DOJ review period expired at midnight last night following a number of extensions. Both carriers say the merger “will create a company better able to serve travelers.”
Both airlines would retain their respective brands as part of the proposed agreement, according to AP. The carriers claim that they have few overlapping routes and that the intent of the merger is to better enable them to compete with American Airlines, Delta Air Lines, Southwest Airlines and United Airlines—the so-called “Big Four.”
Alaska first announced in December it was offering $18 per share for stock in Hawaiian. The deal would include $900 million in debt held by Hawaiian. According to a filing with the Securities and Exchange Commission, closing the deal would be subject to approval from the Department of Transportation, and Alaska and Hawaiian have been working with the DOT on “lingering issues.”
