Antitrust regulators at the Department of Justice won't challenge Alaska Airlines' proposed acquisition of Hawaiian Airlines as anticompetitive.
The merger review period passed without action on Tuesday, and the two airlines will work to close the $1.9 billion deal.
"This is a significant milestone in the process to join our airlines," Alaska Airlines said in a statement. "During the DOJ's review, Alaska worked closely with the Hawaii attorney general to reinforce and expand upon our commitments for the future of Hawaiian Airlines and to Hawaii consumers. These include plans to maintain the Hawaiian Airlines brand and local jobs and continue providing strong service between, to, and from the Islands."
The airline noted that it must still clear other regulatory hurdles and closing conditions prior to closing the deal. In particular, the airlines must receive interim approval from the Transportation Department to operate under common ownership while they await final approval for Hawaiian to transfer its international route authorities to Alaska, and as they integrate their operations into a single operating certificate.
Under the merger arrangement, Alaska plans to keep the Hawaiian Airlines brand distinct, a nod to the brand's power Hawaii, while otherwise running the two carriers as a merged airline, with centralized scheduling, a single loyalty program and interchangeable aircraft.
Alaska will purchase Hawaiian for $18 per share. The price of $1.9 billion is inclusive of $900 million in Hawaiian Airlines debt.
Under the Biden administration, the DOJ has taken a skeptical approach to airline mergers. The department successfully sued to block JetBlue's acquisition of Spirit Airlines. It also was successful in breaking up a close alliance between American and JetBlue in the New York area and Boston.
The Alaska-Hawaiian merger, however, received key support from the Hawaiian government. The proposal also likely benefitted from the limited overlap between the airlines' networks. Alaska and Hawaiian compete in just 12 markets.
Hawaii Gov. Josh Green on Tuesday said he looks forward to the merger moving ahead, maintaining that there are "overwhelming consumer, employee and community benefits that will result from it."
"The merger will vastly expand the number of destinations throughout North America for Hawaii 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," Green said.