A US federal judge has dismissed a lawsuit that sought to stop Alaska Airlines from purchasing Hawaiian Airlines for $1.9 billion.
On August 12, 2024, the US District Court in Hawaii’s Chief Judge Derrick Watson dismissed the case without prejudice for lack of standing. According to the order, the plaintiffs did not provide any personal connection to either airline that would plausibly establish a concrete or particularized harm from the merger.
The lawsuit was initially filed by a group of airline passengers and former travel agents on April 15, 2024. The plaintiffs were concerned that the deal between Alaska Airlines and Hawaiian Airlines would “lead to layoffs, the loss of certain services, reduced consumer choice, fewer flights, higher fares and fees”.
The plaintiffs claimed that should the merger go ahead Alaska Airlines would have a capacity share of more than 40% for Hawaii-US routes and become the largest airline for those routes. Additionally, the carrier would gain control over 67% of Hawaiian’s market share in interisland flights and routes to 10 international destinations in seven Pacific and Asian countries.
Despite the court’s rejection of the lawsuit, Joseph Alioto, the attorney for the plaintiffs, announced plans to take the case to a higher court.
Alaska Airlines announced its intention to acquire Hawaiian Airlines in December 2023. Since January 2024, Alaska Airlines and Hawaiian Airlines have been cooperatively engaged with the US Department of Justice (DOJ) as it reviews the proposed merger between the two airlines.
In July 2024, Alaska Airlines and Hawaiian Airlines mutually agreed with the DOJ to extend the formal review of their proposed merger until August 15, 2024, moving the initial date from August 5, 2024.
In a statement released in July 2024, Alaska Airlines said it will continue to “cooperate with the DOJ in this review process”.
“We continue to believe this combination will enable a stronger platform for growth and competition in the United States, long-term job opportunity for employees, and continued investment in local communities and environmental stewardship,” the statement continued.
The final decision on the future of the Alaska-Hawaiian merger will be made by the DOJ pending review.
