Summary
- The Department of Justice has requested Alaska Airlines and Hawaiian Airlines to debate their proposed merger promptly for review.
- The merger must meet national regulatory approvals, and each airlines are compiling data to maneuver forward.
- If approved, the merger will significantly increase the variety of destinations served from Hawaii, and Alaska Airlines’ fleet will surpass 300 planes.
The Department of Justice (DOJ) has requested Alaska Airlines and Hawaiian Airlines to debate their proposed merger. The airlines have been asked to answer promptly so the DOJ can review.
Late last yr, Alaska Airlines agreed to buy Hawaiian Airlines for $18 in share money, which valued the Honolulu-based carrier at around $1.9 billion, including all its debt. This got here quickly off the toes of JetBlue’s try to purchase the ultra-low-cost carrier Spirit Airlines.
Photo: Ryken Papy | Shutterstock
If the merger were to proceed, Hawaiian Airlines would retain all its branding and logos and aim to turn out to be a subsidiary of the oneworld carrier. Nevertheless, the airlines are expected to partner on routes, capability, and code-shares.
Loads of challenges ahead
Should Alaska and Hawaiian merge, it must meet many national regulatory approvals. February 7 saw the DOJ receive a second request from the Antitrust Division to review the merger. The request extends the required waiting period until 30 days when each Alaska and Hawaiian comply and supply the data unless the DOJ terminates this waiting period. Each airlines will likely be quickly compiling their data to persevere with the merger.
![An Alaska Airlines Embraer E175 (Operated by SkyWest Airlines) tail and a Hawaiian Airlines Airbus A330 tail at Sacramento International Airport.](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/01/shutterstock_2121442103-2.jpg)
Hawaiian Airlines And Alaska Airlines Brace For Opposition To Merger
The merger would have reportedly been approved previously, however it comes on the heels of JetBlue and Spirit’s try to mix.
It won’t be a smooth ride for the carriers; as reported by Beat of Hawaii, a shareholder has filed a lawsuit against the potential $1.9 billion money and debt purchase of Hawaiian Airlines by Alaska Airlines.
Based on the docket filed within the Latest York District Court for the Southern District of Latest York on January 10, together with the violation of assorted acts and regulations, the unique share price offered by Hawaiian Airlines board of directors is now $2 lower than previously outlined inside a US Securities and Exchange Commission (SEC) filing.
In December, Hawaiian Airlines and Alaska Airlines sought approval from the Department of Justice (DOJ) amid concerns of antitrust setbacks much like the present JetBlue and Spirit Airlines merger. Though the DOJ has not yet publicly commented on the filing, in response to CNBC, analysts are projecting a legal challenge from federal regulators to materialize eventually.
Photo: Hawaiian Airlines
Are another carriers interested?
Currently, the Alaska-Hawaiian merger plan is to maintain individual brands across each airline, however it is unclear if personnel may even remain separate. Mergers and acquisitions in the US have happened a number of times, forming the legacy carriers United Airlines, Delta Air Lines, and American Airlines, but not and not using a fight from the federal government.
Presently, it’s unclear what the federal government’s stance is on this merger. If blocked, the 2 airlines may have to barter with the federal government and relinquish specific routes and gates to satisfy requirements.
Photo: Alaska Airlines
Based on a presentation to investors shortly after the acquisition was announced, only 3% of the airline’s networks overlap. The merger of the 2 will bring a couple of three-times increase in destinations served from Hawaii, excess of another carrier.
![shutterstock_1103362796-1](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2023/12/shutterstock_1103362796-1.jpg)
Evaluation: Winners and Losers From Alaska Airlines’ Acquisition Of Hawaiian Airlines
Which industry players are in a stronger position because of this of the merger?
If the merger is approved, the Alaska Airlines Group’s fleet, which incorporates regional operator Horizon Air, may even surpass 300 planes.