A flight attendant attempts to clean up a flooded bathroom that let water into the cabin on an Alaska Airlines flight from Hawaii to Alaska (Photo by Dustin Parker/Facebook)
Alaska Airlines and Hawaiian Airlines are one step closer to merging, according to statements released Monday.
In a statement on its website, Alaska Airlines said the deal had cleared a regulatory hurdle following the expiration of a “deadline for the Department of Justice to complete its regulatory investigation of the proposed merger of Alaska Airlines and Hawaiian Airlines under the HSR Act.”
Hawaiian Airlines shares rose about 9% in premarket trading on Tuesday following the announcement, while Alaska Airlines shares were flat. The merger would be a $1.9 billion deal.
“Over the past few months, my administration and I have worked with Alaska Airlines leadership to carefully review the potential impacts of a merger and have insisted that any changes would expand travel options for our residents and preserve union jobs,” Hawaii Gov. Josh Green said in a press release.
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A Hawaiian Airlines jet lands on the runway at Phoenix Sky Harbor International Airport in Phoenix, 14 February 2006. (Karen Breiter/AFP via Getty Images/Getty Images)
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Arc | Alaska Airlines Group, Inc. | 34.98 | +0.02 |
+0.06% |
| Ha | Hawaiian Holdings Co., Ltd. | 17.65 | -0.03 |
-0.17% |
The proposed airline combination now requires approval from the U.S. Department of Transportation.
“We will then complete the closing process, advance the integration of our two companies, welcome Hawaiian Airlines customers and employees into the Alaska Airlines family and expand benefits and choices for consumers in Hawaii, Asia Pacific, the U.S. mainland and around the world,” Alaska Airlines said.
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A Hawaiian Airlines plane takes off near an Alaska Airlines plane at Los Angeles International Airport, Tuesday, Dec. 5, 2023. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
An Alaska SkyWest Embraer E175LR aircraft departs from Los Angeles International Airport on May 5, 2024, bound for San Francisco. (Kevin Carter/Getty Images)
Green said Alaska Airlines plans to maintain the Hawaiian Airlines brand and “strengthens our commitment” to preserving and growing union jobs in the state. He believes the merger will “provide Hawaii residents with an increased number of destinations across North America that are accessible from the islands with direct or one-stop service.”
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Mergers and acquisitions in the airline industry have come under increasing scrutiny from regulators. Federal judge blocks JetBlue Airways plans to buy ultra-low-cost airline Spirit Airlines for $3.8 billion.
Reuters contributed to this report.
