The proposed merger of Alaska Airlines and Hawaiian Airlines is moving forward as the regulatory review period for the U.S. Department of Justice has expired and the airline is now under review by the U.S. Department of Transportation.
This “important milestone” brings the merger closer to reality while the U.S. Department of Transportation reviews the airlines’ request for a temporary waiver.
Alaska officials said the airline worked closely with Hawaii’s Attorney General during the Justice Department’s review to reaffirm and expand its commitments to the future of Hawaiian Airlines and Hawaii consumers.
“This includes plans to maintain the Hawaiian Airlines brand and local jobs and to continue to provide high-performance service between, to and from the islands,” Alaska officials said.
Alaska entered into an agreement to purchase Hawaiian Airlines in December for approximately $1.9 billion. Alaska Air Group, Inc. will acquire the airline for $18 per share in cash. Alaska Air will also assume Hawaiian’s net debt of $0.9 billion.
“Over the past few months, my administration and I have worked with Alaska Airlines leadership to carefully consider the potential impacts of a merger, and we have insisted that any changes expand travel opportunities for our citizens and preserve union jobs,” Gov. Josh Green said in a statement Monday. “I appreciate that the Department of Justice has taken Hawaii’s unique needs into strong consideration when reviewing the proposed merger.”
“I look forward to this merger process and the tremendous benefits it will bring to consumers, workers and the community.”
Following the review and application for a provisional exemption, Alaska Airlines announces that it will complete the work to close the transaction and proceed with the integration of the two companies.
The merger of the two airlines will make Alaska the fifth largest airline in the United States. The fleet consists of 365 narrow-body and wide-body aircraft. Passengers will be able to reach 138 destinations via the combined networks and more than 1,200 destinations via the oneworld alliance.
“Alaska has reaffirmed its commitment to our state and will uphold the Hawaiian Airlines brand, preserve and grow union jobs in our Hawaii, and continue to provide essential passenger and air cargo service to, from and within the islands,” Green said. “I am confident that the combination of these two airlines will create a stronger company that will provide more travel options for Hawaii residents and local businesses – and increase competition throughout the U.S. airline industry.”
