Alaska Airlines' $1.9bn acquisition of Hawaiian Airlines has been approved by the US Department of Transportation (DOT) on September 17, 2024.
The DOT issued an order to grant exemption relating to the transfer of international route authorities in the combination of Alaska Airlines and Hawaiian Airlines.
The two airlines agreed to "certain commitments" as part of the DOT's order, but Alaska maintained they will not "impact the synergies of the deal".
"We look forward to formally welcoming Hawaiian Airlines’ guests and employees into Alaska Air Group," said Alaska Air Group CEO Ben Minicucci.
The two companies expect to close the merger in "the coming days". Alaska will now shift its focus to obtaining a single air operator certificate (AOC) from the Federal Aviation Administration (FAA). Until then, the two airlines will operate as one organisation with two separate airline operations and respective AOCs.
Hawaiian CEO Peter Ingram will step down following the transaction's close. This was announced in conjunction with the merger's announcement in December 2023. Alaska Airlines regional president of Hawaii and Pacific Joe Sprague will succeed Ingram. Sprague will lead all aspects of Hawaiian Airlines' operations until the FAA grants the merged companies a single AOC.
"We have a unique, once-in-a-generation opportunity to combine two incredible companies with aligned values and 90+ year legacies of serving and connecting local communities," said Sprague.
In addition, several senior executives from Hawaiian Airlines will comprise the interim Honolulu leadership team. Alaska Airlines regional VP of Hawaii Daniel Chun will also serve on the Honolulu leadership team.
Sprague added: "I am deeply honored to work alongside these strong leaders from Hawaiian Airlines to lead the airline’s people, operations, and brand through this transition while sustaining our commitments to safety and service."
The DOT approval marked the final hurdle for the airlines after the US Department of Justice's (DOJ) review period expired on August 19, 2024, and launched no investigation into the merger. This was a significant step in the merger, particularly after investors grew concerned after the DOJ had blocked JetBlue's $3.8bn acquisition of Spirit in January this year before being terminated in March.
Alaska and Hawaiian had jointly applied to the DOT for route transfer in July this year.
The companies claim the merger will enable greater growth and competition in the US.
Hawaiian operates a mixed fleet of widebody A330s and 787s, along with A321neo and 717 narrowbodies.