Proposed Alaska-Hawaiian airline merger moves forward; Plan to create mega U.S. West Coast carrier

Alaska Airlines worked closely with Hawaii's Attorney General to ensure that the Hawaiian Airlines brand and service will be maintained.Photo byJosh WithersonUnsplash

The proposed merger between Hawaiian Airlines and Alaska Airlines has cleared a major regulatory hurdle, with the decision now moving to the U.S. Department of Transportation (DOT). The merger, first announced on December 3, has been under review by the Department of Justice (DOJ), which has now completed its examination.

Alaska Airlines worked closely with Hawaii's Attorney General to ensure that the Hawaiian Airlines brand and service will be maintained. Hawaii's Governor highlighted the significance of the DOJ's review period ending, noting that the merger is now subject to DOT approval.

The merger, valued at $1.9 billion, will see Alaska Airlines expanding its fleet to 365 airplanes while allowing Hawaiian Airlines to continue operating under its own brand. Alaska officials have assured that customer loyalty programs will be unified, allowing travelers to retain their miles.

The deal comes after Hawaiian Airlines faced challenges emerging from the pandemic, particularly with travel from Japan still below pre-COVID levels. Alaska Airlines will acquire Hawaiian Airlines for $18 per share, including $900 million of Hawaiian's net debt.