The Biden administration is letting Alaska Airlines buy Hawaiian Air but with conditions

The Biden administration is letting Alaska Airlines complete its $1 billion purchase of Hawaiian Airlines after the carriers agreed to certain conditions, including maintaining current service on routes between Hawaii and the mainland U.S. where they don’t have much competition.

Transportation Department officials said Tuesday that no obstacles remain to the airlines closing the deal and beginning to merge, although some final approvals were still pending.

Alaska Airlines said it expected to close the deal “in the coming days.”

Alaska's stock closed down 1%, while shares in Hawaiian Holdings rose 4% to $18, the price per share that Alaska agreed to pay for its smaller rival.