Alaska Airlines Moves Closer to Acquiring Hawaiian Airlines Amid DOJ Approval
Alaska Airlines Moves Closer to Acquiring Hawaiian Airlines
Alaska Airlines moves closer to acquiring Hawaiian Airlines as the U.S. Department of Justice decided not to challenge the $1 billion deal aimed at creating a more competitive airline.
Details on the Deal
- The acquisition involves Alaska paying $18 in cash for each share of Hawaiian Airlines, along with $900 million in debt.
- Both airlines plan to maintain their respective brands following the merger.
Implications for the Airline Industry
The merger could reshape the competitive landscape against major carriers like American Airlines and Delta Air Lines. Alaska and Hawaiian are keen to strategically align their operations.
Regulatory Review and Future Steps
The DOJ's decision marks a significant milestone, especially as recent high-profile mergers were blocked by the Biden administration. However, the merger remains contingent on approval from the Department of Transportation.
Market Response
- Shares of Hawaiian Holdings surged over 12% post-announcement.
- Alaska Air stocks showed no change.
Despite the optimistic outlook, Hawaiian Airlines faces its own set of challenges, particularly with its reliance on tourism from Japan, which has seen decreased travel since 2021.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.