Aug 19 (Reuters) - Alaska Airlines said on

Monday its proposed merger with Hawaiian Airlines has

cleared a regulatory obstacle with the U.S. Department of

Justice, just days after the airline agreed to extend a review

period of the $1.9 billion deal.

"The time period for the U.S. Department of Justice to

complete its regulatory investigation of the proposed

combination of Alaska Airlines and Hawaiian Airlines under the

HSR Act has expired," the airline said in a statement on its

website.

"This is a significant milestone in the process to join our

airlines," the company said, adding that it is now awaiting next

steps with the U.S. Department of Transportation (DOT).

Alaska Airlines, which had announced the merger last year,

agreed last week to extend the review period of its proposed

acquisition of Hawaiian Holdings ( HA ) with the DOJ.

"Today, the proposed merger of Alaska Airlines and Hawaiian

Airlines cleared an important milestone. The regulatory review

period for the U.S. Department of Justice has ended," Hawaii's

governor Josh Green said.

"The merger will vastly expand the number of destinations

throughout North America for Hawai'i residents that can be

reached nonstop or one-stop from the islands, and HawaiianMiles

members will retain the value of their miles while gaining

access to more destinations around the world."

Mergers and acquisitions in the aviation industry have faced

tough scrutiny from regulators. Earlier this year, a federal

judge blocked JetBlue Airways' ( JBLU ) planned $3.8 billion

acquisition of ultra-low-cost carrier Spirit Airlines ( SAVE ).

(Reporting by Mrinmay Dey in Bengaluru; Editing by Savio

D'Souza and Varun H K)