Alaska Air to Acquire Hawaiian Airlines: A Historic USD 1.9 Billion Deal

Alaska Air moves closer to acquiring Hawaiian Airlines for USD 1.9 billion after the US Department of Justice chose not to challenge the merger. The deal, including USD 900 million in debt, aims to enhance competition against the US market's Big Four airlines while preserving both brands.

Alaska Air is inching closer to its acquisition of Hawaiian Airlines, as the US Department of Justice decided not to oppose the proposed USD 1.9 billion deal. This merger, touted by the carriers as a move to better serve travelers, includes USD 900 million in debt held by Hawaiian Airlines.

Announced in December, Alaska Air plans to pay USD 18 in cash per Hawaiian share. Unlike most industry acquisitions, the brands will remain distinct post-merger, a decision aimed at preserving the companies' unique identities amid a market dominated by four major airlines: American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines.

According to regulatory filings, the Department of Justice's review period lapsed, marking another milestone for the merger. However, final closure of the deal still hinges on approval from the Department of Transportation, where both airlines are addressing lingering issues as noted in Securities and Exchange Commission filings.

Following the news, Hawaiian Holdings Inc.'s shares surged by over 11 percent before the market opened, while Alaska Air Group Inc. saw a 1.5 percent increase in its stock.

(With inputs from agencies.)