What’s Next for the Alaska-Hawaiian Airlines Merger and How It Could Affect Future Flights – WEIS

(NEW YORK) — Hawaiian Airlines and Alaska Airlines are one step closer to finalizing a $1.9 billion deal that would mark the largest consolidation of any U.S. carrier since 2016.

The Justice Department’s regulatory review deadline passed earlier this week without a hitch, meaning the two companies have cleared the first major hurdle in their merger plans, which were first announced last December.

Before the deal can go through, it must pass a U.S. Department of Transportation inspection — a customary condition of closing — which includes filing an application for a temporary waiver.

The Justice Department has previously been skeptical of airline partnerships and recently blocked the proposed merger of JetBlue and Spirit.

While it is not yet known how long the approval process might take, experts say it could take years to work out the logistical details.

Unless all approvals are received, it will be Alaska Airlines’ second takeover in the past decade, after it beat JetBlue to bid for Virgin America.

Under the proposed Hawaiian-Alaska connection, both airlines would remain intact and continue to operate under their current names.

Alaska Airlines Statement on Next Steps to Hawaii Merger

“This is an important milestone in the process of joining our airline,” the SeaTac, Wash.-based carrier said in a statement this week. “During the Hart–Scott–Rodino Antitrust Improvements Act (HSR) period, Alaska has worked closely with the Hawaii Attorney General to strengthen and expand our commitments to the future of Hawaiian Airlines and Hawaii consumers. These include plans to maintain the Hawaiian Airlines brand and local jobs, and continue to provide strong service to, from and from the islands.”

The airline also said that once potential next steps are taken, it will “complete the closing of the transaction and begin integrating the two companies, welcoming Hawaiian Airlines guests and employees to Alaska Air Group and expanding benefits and choices for consumers in Hawaii, the Asia Pacific region, the continental United States and around the world.”

Hawaii Governor Comments on Possible Airline Merger

After the latest merger details were released, Hawaii Governor Josh Green said in a statement that he and his staff had been working with Alaska Airlines management over the past several months “to carefully consider the potential impacts of consolidation, and we were insistent that any changes would expand travel options for our residents and preserve union jobs.”

“Alaska has strengthened its commitment to our state and will maintain the Hawaiian Airlines brand, preserve and grow union jobs in our Hawaiian homeland, and continue to provide essential passenger and cargo service to, from, and within the islands,” he said. “The merger will significantly expand the number of North American destinations for Hawaii residents that can be reached directly or with a single stop from the islands, and HawaiianMiles members will retain the value of their miles while gaining access to more destinations around the world.”

Green added that he is “confident” the merger will “offer more travel options for Hawaii residents and local businesses” and “increase competition in the U.S. airline industry.”

What the Alaska and Hawaiian Airlines merger means for travelers

Travel experts at Going.com — formerly Scott’s Cheap Flights — assessed the potential deal and what it could mean for customers.

“Competition between airlines is the single biggest driver of cheap flights. A merger of two airlines — whose route maps have some overlap — would not lead to more cheap flights for consumers, but to some extent, fewer cheap flights,” Katy Nastro, a Going spokeswoman, told ABC News.

In addition, the expert panel believes that some markets could suffer more than others.

“The Justice Department did not require concessions, which meant that Alaska could ultimately make some cuts on routes that have consistently underperformed, such as inter-island routes,” she explained.

The airline has not issued an official statement on when and where any route changes will take place.

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