A US judge has dismissed a consumer lawsuit seeking to block Alaska Airlines’ $1.9 billion plan to take over Hawaiian Airlines.
According to a Reuters report, U.S. Chief District Judge Derrick Watson ruled on Monday that airline passengers who filed suit raising concerns about route cancellations and fare increases as a result of the deal had not proven they had legal standing to sue against the merger.
“You claim that there is no personal connection with either airline that would plausibly demonstrate any specific or particular harm,” Watson wrote in his dismissal letter.
The lawsuit, which alleges the merger violates antitrust laws, was filed by eight airline passengers from Hawaii, California and other states.
The complaint states: “The current trend toward concentration, reduction of competition and tendency toward the creation of a monopoly in the airline industry is unprecedented, unprecedented and dangerous.”
This week’s court decision was welcomed by Alaska Airlines, which said in its own statement on the matter that the merger would “expand benefits and choice for consumers.”
Meanwhile, the plaintiffs in the case have not given up hope. Consumer lawyer Joseph Alioto said they would instead ask a U.S. appeals court to block the merger.
Alaska Airlines Boeing 737 Max 9 taking off. (Image credit: Laser1987/iStock Editorial/Getty Images Plus)
Alaska Airlines proposed taking over Hawaiian last year.
Since then, numerous hurdles have been overcome in the course of the merger. In March, for example, the two airlines agreed with the US Department of Justice on a so-called time agreement, which is part of the review process.
This means that Hawaiian and Alaska have agreed to a clause that prevents their merger from being completed. A final decision will be made by the Justice Department, which reserves the right to block the deal.
It remains unclear whether the Justice Department will actually block the merger of the two airlines. An investment publication in July suggested that the deal could ultimately be stopped by the government.
“The Justice Department is unlikely to approve the proposed $1.8 billion sale to Alaska Air. The antitrust agency is preparing to challenge the merger,” Seeking Alpha wrote, according to Beat of Hawaii.
The Justice Department’s review phase is expected to be completed by Thursday, August 15.
According to the Reuters report, a ministry spokesman did not immediately respond to a request for comment on the court ruling in the matter.
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