The United States Department of Justice has given its approval to the proposed merger between Alaska Airlines and Hawaiian Airlines.
The announcement propelled Hawaiian's shares by around 9% in the pre-market trading on Tuesday, while Alaska's shares remained unchanged.
Alaska Airlines stated on its website that the deadline for the U.S. Department of Justice to finalize its examination of the proposed fusion of Alaska Airlines and Hawaiian Airlines under the HSR Act has passed.
They further mentioned that they are now looking forward to the subsequent steps with the U.S. Department of Transportation (DOT).
Alaska Airlines, who announced the merger last year, had recently agreed to prolong the assessment period of its proposed acquisition of Hawaiian Holdings with the DOJ.
"Today, the proposed fusion of Alaska Airlines and Hawaiian Airlines surmounted a significant hurdle," said Hawaii's governor Josh Green.
"The regulatory review period for the U.S. Department of Justice has elapsed," he added.
"This merger will significantly increase the range of nonstop or one-stop travel destinations for Hawaii residents across North America. Moreover, HawaiianMiles members will preserve the worth of their miles while gaining access to more international travel destinations."
Mergers and acquisitions in the aviation sector have frequently encountered intense scrutiny from regulators. Back in the early part of the year, a federal judge halted JetBlue Airways' proposed $3.8 billion acquisition of budget carrier Spirit Airlines.
The proposed fusion of Alaska Airlines and Hawaiian Airlines, now without regulatory hurdles, could positively impact their business operations.
This development signifies a significant step forward in the business expansion plans of both Alaska Airlines and Hawaiian Airlines.
