Alaska Airlines (AS, Seattle Tacoma International) has announced that the Antitrust Division of the US Department of Justice (DOJ) has completed its review and approved Alaska Air Group’s acquisition of Virgin America (San Francisco).

“We couldn’t be more excited about receiving DOJ clearance for our merger with Virgin America,” Alaska Air Group Chairman and CEO Brad Tilden said. “With this combination now cleared for take-off, we’re thrilled to bring these two companies together and start delivering our low fares and great service to an even larger group of customers.”

Alaska was not required to divest any assets as a condition of DOJ clearance but did agree to seek DOJ approval before selling, leasing, or trading the slots and gates at Dallas Love Field, New York La Guardia, or Washington National that Virgin America obtained from the American Airlines-US Airways antitrust merger settlement.

Antitrust clearance will also see a limited reduction of codesharing with American Airlines with the net financial impact estimated to be between USD15-20 million.

Alaska Airlines and American are not allowed to market each other's flights on non-stop overlap markets (affecting thirty-three markets), while American cannot sell Alaska Airlines flights to/from American hubs (affecting nine markets). Lastly, Alaska Airlines cannot sell American Airlines flights from Los Angeles International to American's other hubs (affecting three markets). Notwithstanding these concessions, both carriers can continue to sell itineraries "beyond" each others' hubs.

In all, Alaska Airlines believes it can recapture about 70% (USD40-45 million) of lost codeshare revenue by replacing it with its own passengers.

In summation, Alaska Airlines expects to close the USD4 billion transaction in the "very near future", taking into account the lawsuit filed by private plaintiffs in a US District Court in San Francisco.

"Lawsuits of this kind are not uncommon with mergers. The company believes the plaintiffs’ claims are without merit and plans to defend its acquisition of Virgin America accordingly," it said.