Alaska Airlines Clears Final Regulatory Hurdle for Merger With Hawaiian Airlines – RetailWire

Alaska Airlines released a statement announcing that it has finally achieved the last approval needed to complete its merger with Hawaiian Airlines.

The U.S. Department of Transportation (DOT) has granted an exemption allowing Alaska Airlines to transfer international route authorities as part of its merger with Hawaiian Airlines. This significant regulatory approval clears the way for the completion of the merger.

The DOT’s order includes specific commitments from both airlines that align with Alaska’s stated goals at the time of the merger announcement. These commitments are not expected to affect the anticipated synergies of the merger, which aims to boost competition and increase consumer choice.

Alaska Air Group CEO Ben Minicucci expressed optimism about the merger.

“We look forward to formally welcoming Hawaiian Airlines’ guests and employees into Alaska Air Group. We sincerely appreciate the exceptional care and service that employees of both companies have continued to show for one another and our guests throughout this process, and the support of both airlines’ labor unions, as we proceed to realize the vision for this combination and build a stronger future together.”

Ben Minicucci, CEO of Alaska Air Group

In other airline-related news, Southwest Airlines is facing a significant challenge from Elliott Investment Management, which is seeking to replace 10 of the airline’s 15 board directors and remove the CEO to improve performance. Elliott’s nominees include former executives from Virgin America and Air Canada.

In an official statement made in August, Southwest Airlines expressed its commitment to constructive engagement with Elliott, noting that after agreeing to a meeting in early September to discuss a collaborative resolution, Elliott instead chose to publicly pursue its agenda for board changes.

The airline emphasized that it remains open to discussions with Elliott regarding shareholder value and will consider the hedge fund’s nominees during its ongoing board refreshment process. At the time, Southwest highlighted its recent efforts to improve governance, having added eight new independent directors in the past three years.

Earlier this month, Southwest announced a significant board restructuring, with six members retiring in November. Additionally, the executive chairman, Gary Kelly, will step down after the 2025 Annual Meeting. The airline plans to bring on four new directors, which will shrink the current number to 12 after Kelly retires.

Despite facing challenges in the airline sector, Southwest is focused on enhancing financial performance and customer experience, with plans to outline new initiatives at an upcoming Investor Day on Sept. 26. Meanwhile, Elliott holds an approximately 8% stake in the airline, which has seen its shares decline by 12% this year, contrasting with a 14% rise in the S&P 500.