Antitrust concerns delay review of Alaska-Hawaiian Airlines deal

Alaska Air Group has agreed to extend the review period for its proposed $1.9 billion acquisition of rival Hawaiian Airlines amid antitrust investigations by the U.S. Department of Justice, the airline said in a filing today.

“Our airlines have agreed with the Department of Justice to briefly extend the formal review period until August 15,” Alaska Air Group said.

The deal, announced last year, has been subject to an antitrust investigation and both airlines said in March that they were “cooperating with the Department of Justice and expect to continue to do so.”

The shortage of new planes, jet engines and pilots has prompted U.S. airlines to grow through acquisitions, putting them in the crosshairs of antitrust regulators, who generally shy away from mergers between smaller airlines.

The acquisition will give Alaska Air more than 50% of the market for flights to Hawaii, one of the world’s most popular vacation destinations.

The airlines entered into a time-limited agreement with the Justice Department in March, in which the airlines agreed not to complete the deal within 90 days of filing antitrust information.