In a significant move within the airline industry, Alaska Air Group, Inc. (NYSE:ALK) has received approval from the U.S. Department of Transportation (DOT) for an interim exemption, advancing its merger plans with Hawaiian Holdings (NASDAQ:HA), Inc. The DOT's green light, announced today, is a critical step towards the completion of the merger, which is expected to be finalized on Wednesday.
The merger, first introduced in an agreement on December 2, 2023, involves Alaska Air Group's subsidiary, Marlin Acquisition Corp., merging with Hawaiian Holdings, resulting in Hawaiian becoming a wholly owned subsidiary of Alaska Air Group. This strategic consolidation is anticipated to strengthen Alaska Air Group's presence in the aviation market, particularly in routes connecting to Hawaii.
The acquisition is subject to customary closing conditions, and while the DOT approval has been secured, the companies are awaiting the fulfillment or waiver of the remaining conditions. Both Alaska and Hawaiian have expressed optimism about the merger's completion, which is poised to occur imminently barring unforeseen circumstances.
The merger has been under scrutiny, with both companies addressing various regulatory, legal, and economic factors that could influence the outcome. The forward-looking statements regarding the merger's expected timing are based on the current available information, and the companies have cautioned that there are no guarantees the merger will occur as planned.
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