Summary
- Alaska Airlines faces concerns about a possible monopoly position in the aviation market.
- Hawaiian Airlines’ 66 aircraft, including Boeing 787s, are part of the acquisition deal.
- A possible merger would allow both airlines to operate separately with a common frequent flyer program.
Alaska Airlines has agreed to an extension of the review period for the planned $1.9 billion takeover of Hawaiian Airlines. The review period with the US Department of Justice (DoJ) has now been extended until August 20.
Photo: Austin Deppe | Shutterstock
The merger agreement between Alaska Airlines and Hawaiian Airlines was announced in December of last year, and both airlines have been working with the Justice Department since then to work out some of the details of the agreement. The deadline for this review period was originally scheduled to end on August 15, but was later extended by one day to August 16, and has now been extended by an additional four days.
A majority market share for Alaska Airlines
The proposed merger would give Alaska Airlines a market share of more than 50 percent on flights to Hawaii, raising concerns about a lack of competition in this lucrative market and the impact this could have on ticket prices. For the same reason, JetBlue’s planned acquisition of ultra-low-cost carrier Spirit Airlines for $3.8 billion was blocked earlier this year.
Photo: Angel DiBilio | Shutterstock
Simple Flying reported last month that the Justice Department was planning to challenge Alaska Airlines’ proposed acquisition of Hawaiian Airlines, which has sent the airline’s stock price reeling. But the proposal received a boost earlier this week when a judge dismissed a lawsuit seeking to block the merger on the grounds that it would create a monopoly in the market.
Learn more:
Judge dismisses lawsuit to block Alaska Airlines’ $1.9 billion Hawaii deal
A group of passengers tried to sue the airlines because they feared a merger would “reduce competition.”
If the merger goes through, the two airlines would continue to operate as separate brands, but with a common frequent flyer program. Hawaiian Airlines would become part of the Alaska Air Group and thus a member of the oneworld alliance. Alaska Airlines joined the alliance in March 2021 as the 13th full member, joining the world’s third largest airline alliance alongside American Airlines, Cathay Pacific, Qatar Airways and Qantas.
Acquisition of 66 aircraft from Hawaiian Airlines
Recent data from ch-aviation shows that Hawaiian Airlines’ fleet currently consists of 66 aircraft with an average age of 10 years, which would also become part of the Alaska Air Group under the proposed acquisition. These include 18 Airbus A321neo, 24 A330-200 and 19 Boeing 717 (Hawaiian Airlines is one of the last remaining operators of the 717).
Photo: Phillip B. Espinasse | Shutterstock
The airline is also awaiting delivery of another ten Boeing 787-9s, which will join the two already in its fleet and help expand its medium- and long-haul offerings in the Pacific and beyond.
Learn more:
Kapuahi takes off: First flight of Hawaiian Airlines’ new Boeing 787 Dreamliner to San Francisco Airport
Hawaiian Airlines’ first Boeing 787-9 has completed several round-trip flights between Honolulu and San Francisco.
