2 weeks Ago By Ty Roush, Forbes Staff
Topline The Department of Transportation on Tuesday allowed Alaska Airlines to close its $1.9 billion acquisition of Hawaiian Airlines, clearing the final regulatory hurdle for a major industry merger that comes after federal officials blocked other deals, after both airlines agreed to several concessions. Key Facts Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines.
Text “Alerts” to (201) 335-0739 or sign up here . Surprising Fact Shares of Hawaiian Holdings, Hawaiian Airlines’ parent firm, increased by nearly 4% to roughly $18 after the announcement. Key Background Alaska Airlines announced its acquisition of Hawaiian Airlines in December, creating a combined airline that would be the fifth-largest carrier in the U.
S. behind United Airlines, Delta Air Lines, American Airlines and Southwest, respectively. The deal allows Hawaiian Airlines to operate as an independent brand, despite combining operations with Alaska Airlines to feature a fleet of nearly 400 planes.
Both airlines cleared regulatory scrutiny from the Justice Department last month, after Alaska Airlines said antitrust regulators failed to file a lawsuit to block the deal in time. Tangent The Biden administration has increased scrutiny of airline acquisitions in recent years, following a wave of mergers in the preceding decades involving Delta, American, United and Southwest. The Justice Department successfully sued to block a $3.
8 billion merger between JetBlue Airways and Spirit Airlines in January. The agency won another lawsuit last year to end a partnership between JetBlue and American in the Northeast, after arguing a deal to collaborate on flights in Boston and New York would drive up fares. Regulators argued the deals would lead to higher prices, while JetBlue said they’d help the airline compete against larger carriers.
Further Reading.
