Alaska Air is one step closer to acquiring Hawaiian Airlines after the US Department of Justice declined to challenge the $1 billion acquisition, which the airlines claim will create a corporation more suited to serving travellers.
Alaska Air Clears A Very Big Hurdle In Its Proposed Merger With Hawaiian Airlines
Alaska Air stated in December that it would pay $18 cash for each Hawaiian share. Hawaiian Airlines’ debt of $900 million is included in the acquisition.
The brands of both airlines would be kept following the merger, which is unusual in an industry where decades of mergers have left only four major carriers dominating the US market.
Hawaiian say they have few overlapping flights, and the goal of the merger is to allow the new airline to compete more effectively with the nation’s Big Four: American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines.
Alaska Air and Hawaiian Holdings, the parent company of Hawaiian Airlines, stated in regulatory filings with the Securities and Exchange Commission Tuesday that the Justice Department’s review period, which had already been extended several times, ended just after midnight.
Alaska Air Clears A Very Big Hurdle In Its Proposed Merger With Hawaiian Airlines
The closure remains subject to Department of Transportation clearance. According to the SEC filing, Alaska and Hawaii have been working with Transportation to resolve outstanding issues.
Hawaiian Holdings Inc. shares rose more than e Alaska Air Group Inc.’s stock rose 1.5%.
SOURCE | AP
