(Reuters) – Alaska Airlines said on Monday that its planned merger with Hawaiian Airlines had cleared a regulatory hurdle from the U.S. Justice Department, just days after the airline agreed to an extension of the review period for the $1.9 billion deal.
“The deadline for the U.S. Department of Justice to complete its regulatory investigation of the proposed merger of Alaska Airlines and Hawaiian Airlines under the HSR Act has expired,” the airline said in a statement on its website.
“This is a significant milestone in the process of joining our airlines,” the company said, adding that it is now awaiting the next steps with the U.S. Department of Transportation (DOT).
Alaska Airlines, which announced the merger last year, last week agreed to an extension of the U.S. Department of Justice’s review period for its planned acquisition of Hawaiian Holdings.
“Today, the proposed merger of Alaska Airlines and Hawaiian Airlines reached an important milestone. The regulatory review period for the U.S. Department of Justice has expired,” said Hawaii Governor Josh Green.
“The merger will dramatically increase the number of destinations across North America that Hawaiian residents can reach nonstop or with a stopover from the islands. HawaiianMiles members will retain the value of their miles while gaining access to more destinations around the world.”
Mergers and acquisitions in the airline industry are subject to strict scrutiny by regulators. Earlier this year, a federal judge blocked JetBlue Airways’ planned $3.8 billion takeover of ultra-low-cost carrier Spirit Airlines.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Savio D’Souza and Varun HK)
