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The proposed merger between Alaska Airlines and Hawaiian Airlines just got one step closer to completion.
Alaska late on Monday said the time period for Department of Justice (DOJ) antitrust regulators to investigate the deal ended without a lawsuit seeking to block the $1.9 billion combination. Now, the airlines will need to win approval from the Transportation Department in order to seal the deal.
Their tie-up would become the largest merger of U.S. carriers in eight years, when Alaska combined with Virgin America for $2.6 billion.
“This is a significant milestone in the process to join our airlines,” Alaska said in a statement, noting that it worked with Hawaii’s attorney general to “reinforce and expand upon our commitments for the future of Hawaiian Airlines (HA) and to Hawai‘i consumers.”
Hawaii Gov. Josh Green said in a statement that the merger would “vastly expand” the number of destinations throughout North America for his state’s residents, while preserving and increasing the number of union jobs. He added that he is confident that the combined — “stronger” — airline will enhance competition in the industry.
Last month, fears were raised that the DOJ would sue to block the merger after the agency sought to extend its review period. Earlier in the year, the DOJ successfully blocked the $3.8 billion merger between Spirit Airlines (SAVE) and JetBlue Airways JBLU-1.85%, which would have merged the U.S.’s sixth- and seventh-largest carriers. Alaska is the fifth-largest airline in the nation.
Hawaiian Airlines stock climbed more than 11% in pre-market trading Tuesday on the news. Shares are now up 13% year-to-date. Alaska Air Group ALK-2.05% stock is up by almost 1% in pre-market trading, although its year-to-date performance is down by almost 9%.