Hawaiian Airlines and Alaska Airlines have entered into an agreement regarding the timing of their proposed tie-up as they work to satisfy the US Department of Justice’s (DOJ) requests for documentation.
On 27 March, the airlines entered a timing agreement with the DOJ, under which they will not to consummate their deal within 90 days after submitting to the DOJ information the agency had requested, according to a Hawaiian filing with the US Securities and Exchange Commission (SEC).
”Hawaiian and Alaska have been working cooperatively with the DOJ and expect to continue to do so,” the filing says.
The carriers received DOJ requests for further information about the deal in early February.
On 3 December, the airlines revealed having signed a deal under which Alaska would acquire Hawaiian for $1 billion, while assuming $900 million of Hawaiian’s debt. Alaska has said it intends to maintain the Hawaiian brand.
Hawaiian Holdings’ shareholders voted on 16 February to accept Alaska’s $1.9 billion acquisition offer. The companies previously said they expect to close the deal in 12-18 months, pending regulatory approval.
President Joe Biden’s administration has broadly opposed consolidation in the US airline sector, successfully suing to break up American Airlines and JetBlue Airways’ Northeast Alliance and then JetBlue’s proposed $3.8 billion acquisition of rival low-cost carrier Spirit Airlines.
So far, the DOJ has not taken action to block Alaska’s proposed acquisition of Hawaiian.
