DOJ wants more time, information on Hawaiian, Alaska merger
Antitrust regulators want more time to review Alaska Airlines’ proposed takeover of Hawaiian Airlines. Antitrust regulators are seeking more time to review Alaska Airlines' proposed takeover of Hawaiian Airlines. The Department of Justice has requested an extension of its 90-day window to review the merger. This follows a previous request from the DOJ for more information and documentary material on the proposed deal. Aviation analyst Peter Forman believes the delay is not necessarily bad news, but indicates that the merger will help prevent Hawaiian from getting into a tough financial situation. The DOJ has previously been tough on airline mergers, previously stopped a deal between Jet Blue and Spirit.
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HONOLULU (KHON2) — Antitrust regulators want more time to review Alaska Airlines’ proposed takeover of Hawaiian Airlines.
According to stock filings by the carriers, they’ve agreed to extend by another 90-days the Department of Justice’s window to scrutinize the merger.
That’s in addition to a first extension last month in which the DOJ asked for more information and documentary material on the proposed deal.
“I wouldn’t necessarily think it’s bad news, I just think it really is they want to slow down the process enough so that they can take a really close look, make sure that it’s okay with them,” said Peter Forman, aviation analyst. “It’s just really a waiting game. We’ll see if the DOJ is okay with this merger or not.”
“Why not approve this, because you don’t want Hawaiian to get into a tough financial situation. And I think the merger will keep them from getting there. They’re just going to be a much more competitive company, much more money in the bank, if they merge with Alaska,” Forman added.
Hawaiian says these types of requests are common.
The 90-day clock has started — it triggers once both sides have ‘substantially complied’ with the DOJ’s second-round request for more details.
Alaska Airlines told us the carriers are still working on those submissions.
The DOJ has been tough on airline mergers, they filed suit against Jet Blue and Spirit and stopped that deal.
They also made American Airlines and Jet Blue unwind an alliance in the northeast.