# Hawaiian Holdings Stock Rises as Extended Review Boosts Outlook
Hawaiian Holdings, the parent company of Hawaiian Airlines, experienced a surge in its stock price on Wednesday after agreeing to extend the U.S. Department of Justice’s review period for its proposed acquisition by Alaska Air Group. This extension has provided a boost to the outlook for the $1.9 billion deal, which was originally set to expire earlier this month. The extension, now set to end at 12:01 a.m. ET Friday, marks the second time the review period has been prolonged.
## Agreement to Extend Review Period
The decision to extend the review period comes as Hawaiian Holdings and Alaska Air Group aim to navigate the regulatory landscape surrounding their proposed acquisition. In a statement, both companies expressed their commitment to cooperating with the Department of Justice during this process. The extension was confirmed through a filing with the Securities and Exchange Commission, indicating a collaborative effort to ensure a thorough evaluation of the merger’s potential impact.
## Antitrust Scrutiny and Delays
The $1.9 billion deal between Hawaiian Holdings and Alaska Air Group faced initial delays due to the Department of Justice’s request for additional information on potential antitrust concerns in February. This request led to a comprehensive assessment of the merger’s implications, prompting the need for a 90-day review period before final approval could be granted. Originally scheduled to conclude on August 5, the review period has now been extended twice, emphasizing the importance of addressing antitrust issues in the airline industry.
Under the Biden administration, there has been a heightened focus on scrutinizing mergers within the airline sector. Concerns have been raised regarding the consolidation of power among key carriers, potentially limiting consumer choices. This regulatory environment has prompted increased antitrust investigations and lawsuits, with recent examples including the cancellations of merger plans by JetBlue Airways and Spirit Airlines earlier this year.
## Market Response and Investor Confidence
The announcement of the extended review period has elicited a positive response from investors, reflected in the 6% surge in Hawaiian Holdings’ stock price during intraday trading on Wednesday. This increase signals growing confidence in the potential success of the acquisition by Alaska Air Group. In contrast, Alaska Airlines’ stock experienced a slight decline of 1.2% to $35.05, highlighting the divergent market reactions to the ongoing regulatory developments.
As the review period approaches its extended deadline, stakeholders are closely monitoring the progress of the merger and the evolving regulatory landscape. The willingness of Hawaiian Holdings and Alaska Air Group to engage with regulators and address antitrust concerns demonstrates a commitment to transparency and compliance in navigating the complexities of the acquisition process.
## Conclusion
In conclusion, the extended review period for the proposed acquisition of Hawaiian Holdings by Alaska Air Group has generated optimism among investors and industry observers. The collaborative efforts of both companies in engaging with regulatory authorities reflect a proactive approach to addressing antitrust considerations and ensuring a thorough evaluation of the merger’s implications. As the deadline for the review period draws near, stakeholders remain poised to witness the outcome of this strategic move within the airline industry.
