Alaska Air, Hawaiian merger clears Justice Department hurdle

Shares of Hawaiian Holdings (HA), the parent company of Hawaiian Airlines, soared Tuesday after the U.S. Department of Justice (DOJ) failed to block Alaska Air Group’s (ALK) $1.9 billion takeover of the carrier.

Alaska Air said in a statement Monday evening that the Justice Department’s deadline to complete its regulatory investigation into the deal had passed, which the airline called “a significant milestone in the process of joining our airlines.”

The airline said the deal still requires approval from the Department of Transportation. It added that once it receives approval and customary closing conditions are met, “we will complete the closing of the transaction and begin integrating the two companies.”

The Justice Department held up the merger as it conducted antitrust reviews

The merger, which was originally announced in December, was put on hold as the Justice Department assessed possible antitrust implications. The deadline for completing the merger was pushed back three times as the parties negotiated terms necessary to obtain regulatory approval.

Fears that the Justice Department would block the merger caused Hawaiian Holdings shares to fall sharply yesterday.

Hawaiian shares were up 11% as of 10 a.m. ET Tuesday and are now up nearly 25% this year. Alaska Air Group shares were little changed.