Alaska Airline parent Alaska Air Group's proposed $1.8bn acquisition of Hawaiian Holdings, parent of Hawaiian Airlines, has been delayed again. Both companies filed 8K forms detailing that the Department of Justice (DOJ) has extended its review period of the merger until August 16, 2024.
The review period had previously been extended by 10 days until August 15, the companies had said in July. Until the review period is complete, the companies agreed not to close the deal.
In May, the two companies had certified substantial compliance with the DOJ’s second request for more information that it made in February. The airlines had entered into a timing agreement with the DOJ after the second request.
Subsequently, the airlines submitted a joint application to the US Department of Transportation (DOT) requesting the “de facto transfer of Hawaiian’s international route authorities”.
Investors have grown concerned over the DOJ potentially blocking the merger. These concerns were no doubt exacerbated by the DOJ’s blocking of JetBlue’s $3.8bn acquisition of Spirit Airlines before it was later terminated in March.
On August 12, 2024, chief US district judge for the district of Hawaii Derrick Watson dismissed a lawsuit attempting to block the merger. The lawsuit was brought to court by ""an assorted group of airline passengers and former travel agents"" under antitrust laws. The court agreed the plaintiffs lacked antitrust standing.
The ruling said: ""They allege no personal connection to either airline that would plausibly establish a concrete or particularized harm. Rather, they assert only the type of generalised injury that is common to 'the public at large'."" With this, the case was dismissed.
Alaska and Hawaiian merger closing delayed again
