Alaska And Hawaiian Airlines Merger Clears Antitrust Hurdle, Says Alaska Airlines

NEW YORK, Aug 21 (Bernama-Xinhua) -- Alaska Airlines and Hawaiian Airlines have successfully passed a key regulatory step in their planned merger, according to Alaska Airlines, reported Xinhua.

"The nearly US$2 billion deal, the first airline merger in almost a decade, is expected to significantly broaden mainland US travel options from Hawaii and expand Alaska Airlines' international presence," said the Washington Post in its report on Tuesday about the move.

An overnight deadline for the Justice Department to file a lawsuit blocking the merger passed with no announcement that it would sue. Statements from Alaska Airlines and the governor of Hawaii said the deal had cleared an important milestone. The Justice Department did not immediately respond to inquiries, according to the report.

Alaska Airlines said in a news release late Monday that the time period for the US Department of Justice to complete its regulatory investigation of the proposed combination of Alaska Airlines and Hawaiian Airlines "has expired."

The merger still has to be approved by the Department of Transportation, according to Alaska Airlines.

The announcement came as a surprise to some in the industry, given the Biden administration's pledge to scrutinise mergers in already highly concentrated industries.

In December, the two carriers announced their plans to merge operations, arguing that in an industry where four major carriers -- American, Delta, Southwest and United -- account for 80 per cent of the market, they had no choice but to join forces.

The Justice Department then opened a review of the deal in February. The carriers had initially sought a decision by Aug 5 but agreed to extend the deadline to Aug 15, according to a regulatory filing. 

--BERNAMA-XINHUA