Alaska Airlines (AS, Seattle Tacoma International) has welcomed the decision of the U.S. District Court for Hawaii to dismiss a lawsuit seeking to block its proposed $1.9 billion acquisition of Hawaiian Airlines (HA, Honolulu).
“We are pleased with the court’s decision in this case. We remain convinced that this proposed merger will expand benefits and choices for consumers in Hawaii, the continental United States and around the world. We remain committed to working through the regulatory review process,” the company said in a statement provided to ch-aviation.
In an order issued on August 12, the court granted a motion by Alaska Airlines and parent company Alaska Air Group to dismiss the April 15 lawsuit filed by eight alleged passengers and travel agents. The court found that the plaintiffs – who claimed the merger would increase industry consolidation, reduce competition and increase airfares – lacked standing because they could not prove “specific or special harm” from the deal.
Hawaiian Airlines was not a defendant in the case. According to Reuters, the plaintiffs’ lawyer has announced that he will appeal the ruling.
Alaska Airlines claimed, among other things, that the plaintiffs were “serial plaintiffs” who had unsuccessfully opposed nearly every airline merger in recent U.S. history and had “reused the same standard allegations” that they had made in other airline mergers.
The decision of the US Department of Justice is still pending. On August 14, it was announced that the deadline by which the Department of Justice must complete its review had been extended by 24 hours to August 16.
The parent companies of both airlines, Alaska Air Group and Hawaiian Holdings, announced their merger agreement on December 2, 2023. Under the agreement, Alaska will assume $900 million of Hawaiian’s debt. The airlines plan to continue operating under their existing brands while integrating their operating systems.
