Alaska Airlines said on Monday its proposed merger with Hawaiian Airlines has cleared a regulatory obstacle with the U.S. Department of Justice, just days after it agreed to extend a review period of the $1.9 billion deal.
The announcement boosted shares of Hawaiian by nearly 9% in premarket trade on Tuesday, while Alaska’s shares were flat.
“The time period for the U.S. Department of Justice to complete its regulatory investigation of the proposed combination of Alaska Airlines and Hawaiian Airlines under the HSR Act has expired,” Alaska Airlines said in a statement on its website.
The company added that it was now awaiting next steps with the U.S. Department of Transportation (DOT).
Alaska Airlines, which announced the merger last year, had agreed last week to extend the review period of its proposed acquisition of Hawaiian Holdings with the DOJ.
“Today, the proposed merger of Alaska Airlines and Hawaiian Airlines cleared an important milestone. The regulatory review period for the U.S. Department of Justice has ended,” Hawaii’s governor Josh Green said.
“The merger will vastly expand the number of destinations throughout North America for Hawai‘i residents that can be reached nonstop or one-stop from the islands, and HawaiianMiles members will retain the value of their miles while gaining access to more destinations around the world.”
Mergers and acquisitions in the aviation industry have faced tough scrutiny from regulators. Earlier this year, a federal judge blocked JetBlue Airways’ planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines.
