 "Alaska Airlines")
Alaska Air Group Inc.’s stock climbed 1.5 pe cent. | Image: Shutterstock
Alaska Air is one step closer to acquiring Hawaiian Airlines after the US Department of Justice chose not to challenge the $ 1.9 billion deal that the carriers say will create a company better able to serve travellers.
Alaska Air announced in December that it would pay $ 18 in cash for each share of Hawaiian. The deal includes $ 900 million in debt held by Hawaiian Airlines.
The brands of both airlines would be preserved after the merger, which is unique in an industry where decades of acquisitions have left only four big carriers dominating the US market.
Alaska and Hawaiian say they have few overlapping routes and the intent of a tie-up is to allow the new airline to better compete with the nation’s Big Four: American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.
Alaska Air and Hawaiian Holdings, the parent company of Hawaiian Airlines, said in regulatory filings with the Securities and Exchange Commission Tuesday that the review period for the Justice Department, which had already been extended several times, expired just after midnight.
The closing is still subject approval from the Department of Transportation. Alaska and Hawaiian have been working with Transportation on lingering issues, according to the SEC filing.
Shares of Hawaiian Holdings Inc. jumped more than 11 per cent before the market open Tuesday. Alaska Air Group Inc.’s stock climbed 1.5 pe cent.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 20 2024 | 10:42 PM IST
