Alaska Air Group (NYSE:ALK) Inc and Hawaiian Holdings have seen their proposed tie-up approved by the US Department of Justice days after a review period was extended.
Alaska hailed the end of the antitrust review as “a significant milestone” in the airlines’ proposed tie-up plans.
Worth US$1.9 billion (£1.5 billion), the deal was announced last year, with Alaska Air set to buy Hawaiian under the proposal.
“The merger will vastly expand the number of destinations throughout North America for Hawaii residents that can be reached,” the state’s governor Josh Green commented on Tuesday.
Alaska had agreed last week with the Justice Department for its review into the merger to be extended, with this passing on Tuesday without regulatory issues being raised.
A separate decision on the deal from the US Department of Transportation is now being awaited, Alaska added.
Alaska ticked up 0.1% in pre-market trading, while Hawaiian soared over 10% on the news.