Alaska Air confirmed that it has chosen to extend the review period of its proposed acquisition of Hawaiian Holdings. The companies are set to extend the review period until the end of August 19.
Worth $1.9 billion, Alaska’s acquisition of Hawaiian is being conducted in conjunction with the U.S. Department of Justice. Since the deal was announced near the end of last year, Alaska confirmed that they, “have been working cooperatively with the DOJ and expect to continue to do so”.
The decision to extend the review period for the acquisition is a rational move given the heavy scrutiny that mergers within the aviation industry face by U.S. courts. In a similar deal, JetBlue Airways planned a $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines. After the acquisition got underway earlier this year, a federal judge decided to block the deal, a fate that Alaska Air would likely look to avoid as it seeks to complete its merger and grow its U.S. market share.