As the clock ticks down on the Department of Justice (DOJ) review of the proposed merger between Alaska Airlines and Hawaiian Airlines, the two companies have agreed to extend the review period by an additional 24 hours. This extension pushes the deadline to 12:01 AM ET on August 16 (6:01 PM on August 15 Hawaii time), offering a very brief window for further negotiations and discussions.
Alaska and Hawaiian Airlines have been working with the DOJ all year as it scrutinizes their $1.9 billion merger proposal. The deal, announced last year, is promising to create a stronger competitive platform, drive long-term job growth, and continue investment in local communities and environmental initiatives. However, the DOJ’s concerns about competition, particularly given the combined airlines’ control of a significant portion of the Hawaii market, have continued to delay a final decision.
The DOJ has escalated its involvement by dispatching a seasoned antitrust attorney to Hawaii, signaling a more aggressive stance in the ongoing negotiations. This move suggests that the DOJ is preparing for potential litigation if a satisfactory resolution isn’t reached soon.
This latest extension follows a similar one granted previously, which extended the review period to August 15. The additional day could be crucial as both Alaska and Hawaiian attempt to cure the DOJ’s concerns and potentially avoid a lawsuit blocking the merger, which is what happened in the case earlier this year when the DOJ said no to the JetBlue-Spirit Airlines merger.
An ongoing shortage of new aircraft continues to make mergers and acquisitions an attractive strategy for airlines looking to expand in various ways. However, such deals remain under intense scrutiny from federal regulators concerned about reduced competition and a negative impact on consumers.
With less than two full days until the final decision is now due, the focus remains on the DOJ and whether this deal will move forward or be grounded.
We welcome your thoughts on the outcome!
Being as how Hawaiian basically lacks competition inter-island ( not flown Southwest due to limited flights) and so many other airlines service Hawaii, I don’t think competition is really part of the equation. We fly Alaska and Hawaiian and look forward to the merger.
Just like someone posted on twitter, this also coincides with the options chain expiry of August 16th. I certainly don’t think this is an accident or coincidence. And looks highly suspicious to me as well.
Hi William. Can you offer more details on that please? Thanks.
Not sure if adding one more day changes anything they didn’t know two weeks ago?…I’m guessing either a deal was reached and now they are dotting their I’s and crossing their T’s or perhaps haggling over gates?
Last I looked the people with a stake in the game are betting it will pass, highest the stock price has been since the deal was announced I believe…….drum roll getting louder!