Alaska Air clears big hurdle in its proposed merger with Hawaiian Airlines

Alaska Air is one step closer to acquiring Hawaiian Airlines after the US Department of Justice chose not to challenge the USD 1.9 billion deal that the carriers say will create a company better able to serve travellers.

Alaska Air announced in December that it would pay USD 18 in cash for each share of Hawaiian. The deal includes USD 900 million in debt held by Hawaiian Airlines.

The brands of both airlines would be preserved after the merger, which is unique in an industry where decades of acquisitions have left only four big carriers dominating the US market.

Alaska and Hawaiian say they have few overlapping routes and the intent of a tie-up is to allow the new airline to better compete with the nation's Big Four: American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.

Alaska Air and Hawaiian Holdings, the parent company of Hawaiian Airlines, said in regulatory filings with the Securities and Exchange Commission Tuesday that the review period for the Justice