The U.S. Department of Justice has until Aug. 5, 2024, to decide whether it will try to block a merger between Alaska and Hawaiian Airlines, according to a document filed with the U.S. Securities and Exchange Commission on Tuesday.
The SEC filing said the airlines completed a second request from the DOJ to turn over antitrust-related information and documents. A previous timing agreement stipulated that once the request was completed, both airlines would wait 90 days before merging.
On Dec. 2, 2023, Alaska announced it was hoping to buy Hawaiian in a $1.9 billion deal, while taking on $900 million of Hawaiian’s debt. The merged company would continue to operate both airlines with independent brands while combining their operating platform.
The DOJ sent Hawaiian and Alaska a request on Feb. 7, 2024, for information and documents in order to review the deal. A second request for further information was sent on March 27, 2024.
The shareholders of Hawaiian Holdings voted to approve the merger deal on Feb. 16, 2024. The airlines previously estimated the time to complete their merger would be within 18 months of the initial announcement.
According to Tuesday’s filing, both airlines have been working cooperatively with the DOJ and are expected to continue to do so.
However, under the Biden administration, the DOJ has been more conservative about airline consolidation, citing concerns of higher prices. On Jan. 16, 2024, a federal judge agreed with the Biden administration and blocked the $3.8 billion JetBlue-Spirit Airlines merger.
Additionally, a group of passengers filed an antitrust lawsuit last month to block the merger. The suit argues that the merger of the airlines violates federal law by lessening competition and threatening Hawaii’s economy.
Michelle Broder Van Dyke covers the Hawaiian Islands for Spectrum News Hawaii. Email her at michelle.brodervandyke@charter.com.