The Alaska Airlines acquisition of Hawaiian Airlines was not contested by the Department of Justice of the United States earlier today — but it is not yet approved, either.
Alaska Airlines Acquisition of Hawaiian Airlines Not Contested — But Not Yet Approved, Either
The deadline to contest the business deal was earlier today, Tuesday, August 20, 2024 — but that deadline quietly passed.
A definitive agreement between Alaska Air Group, Incorporated and Hawaiian Holdings, Incorporated was officially announced on Sunday, December 3, 2023 under which Alaska Airlines will acquire Hawaiian Airlines for $18.00 per share in cash — inclusive of $0.9 billion of Hawaiian Airlines net debt.
The Justice Department has already recently put an end to the:
- Northeast Alliance with JetBlue Airways and American Airlines, which expired on Wednesday, July 5, 2023
- Acquisition of Spirit Airlines by JetBlue Airways on Monday, March 4, 2024, which prevented the formation of the new fifth largest airline in the United States
This is not the first time Alaska Airlines has acquired another airline. Alaska Airlines initially agreed to acquire Virgin America for $2.6 billion in cash back on Monday, April 4, 2016. The Department of Justice officially approved the acquisition of Virgin America Incorporated by Alaska Airlines on Tuesday, December 6, 2016 after the completion of its review. The last official flight of Virgin America from Los Angeles to San Francisco occurred at 9:35 in the evening Pacific Daylight Time on Tuesday, April 24, 2018.
Final Boarding Call
That the Department of Justice did not contest the acquisition of Hawaiian Airlines by Alaska Airlines by the deadline earlier today is good news, because it is considered to arguably be the most difficult part of the entire process — although the chance still exists that the request to complete the acquisition could be denied.
With the exception of a number of flights between Hawaii and several cities that are located on the west coast of the United States, the route networks of both airlines do not overlap. This can potentially be good for the consumer as well as for both airlines — especially for members of the new combined membership program with the significantly expanded combined route network.
All photographs ©2022 and ©2023 by Brian Cohen.
