Alaska Air is moving forward with its acquisition of Hawaiian Airlines after receiving approval from the U.S. Department of Justice for the $1.9 billion deal. The merger, which was announced in December, will see Alaska Air paying $18 in cash for each share of Hawaiian, including assuming $900 million in debt held by the airline.
Both airlines have stated that their respective brands will be retained post-merger, a departure from the trend in the airline industry where consolidation has led to the dominance of just four major carriers in the U.S. market.
Alaska and Hawaiian have emphasized that their route networks have minimal overlap, with the primary goal of the merger being to enhance their competitiveness against the industry's leading players: American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines.
Following the Department of Justice's decision not to challenge the deal, the next step for the acquisition is securing approval from the Department of Transportation. Both Alaska Air and Hawaiian Holdings have been actively addressing any outstanding issues with the Transportation Department to facilitate the closing of the transaction.
Upon news of the progress in the acquisition, shares of Hawaiian Holdings Inc. surged over 11% in pre-market trading, while Alaska Air Group Inc.'s stock also saw a 1.5% increase.
