Alaska Airlines (NYSE:ALK) reports its plan to acquire Hawaiian Airlines (NASDAQ:HA) has cleared the U.S. Justice Department after the period for antitrust regulators to finish an investigation of the deal ended without a lawsuit to block the deal, eight months after the two carriers announced a $1.9-billion agreement to combine.
The two carriers now must win approval from the U.S. Transportation Department before the deal closes. It wasn’t immediately clear how long that process will take.
The combination would become the largest merger of U.S. carriers since Alaska merged with Virgin America eight years ago.
“The time period for the U.S. Department of Justice to complete its regulatory investigation of the proposed combination of Alaska Airlines and Hawaiian Airlines under the [Hart-Scott-Rodino Antitrust Improvements] Act has expired,” Alaska Airlines said in a statement. “This is a significant milestone in the process to join our airlines.”
The development comes after the DOJ won a court ruling in January that blocked JetBlue Airways’ (NASDAQ:JBLU) acquisition of Spirit Airlines (NYSE:SAVE). Last year, the DOJ won another suit that undid a partnership in the Northeast between JetBlue and American Airlines (NASDAQ:AAL).
Hawaiian had faced a host of challenges in the months leading up to the deal — which the two carriers announced last December — including the Maui wildfires, increased competition from Southwest Airlines (NYSE:LUV), and the slower recovery of travel to and from Asia after the COVID-19 pandemic.
AlK shares dropped a dime to $34.86, while those for HA soared $1.81, or 11.4%, to $17.69.
