Alaska Air Nears Acquisition of Hawaiian Airlines

Alaska Air is nearing the completion of its acquisition of Hawaiian Airlines after the US Department of Justice refrained from contesting the $1 billion deal. Announced in December, the transaction involves Alaska Air paying $18 per share in cash, in addition to Hawaiian's $900 million debt. Leaders of both airlines assert the merger will enhance their capability to serve travelers effectively.

The consolidation will preserve both brands, a rarity in an industry dominated by four major carriers: American, Delta, Southwest, and United Airlines. While Alaska and Hawaiian report minimal route overlap, they hope the merger will boost their competitive stance against these giants. As outlined in regulatory filings, this deal still requires approval from the Department of Transportation, with both companies currently addressing remaining concerns.

The Justice Department's decision stands in contrast to its recent actions blocking consolidations involving JetBlue Airways and Spirit Airlines, as well as a partnership between JetBlue and American Airlines. This marks the first significant airline merger since Alaska's acquisition of Virgin America in 2016. Following the announcement, Hawaiian Holdings' shares surged 12% at market opening, while Alaska Air Group's shares remained steady. (This story was generated by Newser's AI chatbot. Source: the AP)