Awaiting DOJ Ruling on Alaska's Buyout of Hawaiian Airlines

Current Status

The US Department of Justice (DOJ) has 10 days past the previous deadline of August 5th to decide whether it will allow or oppose the merger of Alaska Airlines and Hawaiian Airlines.

Recent Developments

On Monday, August 19th, Alaska Airlines announced that the waiting period for the DOJ's review of the buyout had expired.

The merger has been under scrutiny by the DOJ due to concerns over potential anti-competitive practices and the impact on consumers.

Last week, the spread between the Alaska Airlines and Hawaiian Airlines stock prices narrowed from 6 to 2, indicating growing confidence in the deal being approved.

Background

In February 2023, Alaska Airlines announced its intention to acquire Hawaiian Airlines for $2.6 billion.

The merger would create a powerful aviation company with a strong presence in the Pacific Northwest and Hawaii.

However, the deal has faced opposition from some consumer groups and competitors who argue that it would reduce competition and lead to higher prices.

Legal Process

Under the Hart-Scott-Rodino Antitrust Improvements Act, the DOJ has 30 days to review mergers and acquisitions that meet certain size thresholds.

The DOJ can seek an additional 30-day extension, which it did in this case.

If the DOJ determines that the merger is likely to harm competition, it can file a lawsuit to block the deal.

Conclusion

The DOJ's decision on the Alaska-Hawaiian Airlines merger is expected to come within the next 10 days.

The ruling will have significant implications for the aviation industry and consumers.

Disclaimer

This article is for informational purposes only and does not provide legal or financial advice. Please consult with a qualified professional before making any decisions.