A decision on the proposed Hawaiian-Alaska merger is moving to the U.S. Department of Transportation, the airlines said yesterday.
According to Hawaii News Now reports, airline officials said it’s a major hurdle cleared after the proposal has been under review by the DOJ since the two airlines announced their intention to merge on Dec. 3.
“Obviously, there was someone who was not happy about the way things were shaping up, so there had to be some negotiations going on in the background all this time,” said Hawaii aviation expert Peter Forman.
Alaska Airlines said it worked closely with Hawaii’s attorney general to secure plans to maintain the Hawaiian Airlines brand and service.
Hawaii Governor Josh Green, in a statement, said: “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. The proposed merger remains subject to the receipt of the U.S. Department of Transportation’s approval of an interim exemption application.”
That review from the U.S. DOT could take much less than the Department of Justice.
“The DOJ is the hardest part because when Jet Blue and Spirit were trying to merge, the DOJ said no go,” said Hawaii aviation expert Peter Forman.
“The Department of Transportation, you’re going to work out whatever nuances need to be. Usually not an issue.”
Under the $1.9 billion deal, Alaska Air, the fifth largest U.S. airline, will expand to a fleet of 365 narrow and widebody airplanes.
Hawaiian Airlines will reportedly still operate under its own brand.
In the initial announcement, Alaska officials said customers will be able to keep their miles and will create one joint loyalty program between the two airlines.
