A new lawsuit has been filed by a well-known San Francisco attorney to attempt to block the acquisition of Hawaii Airlines by Alaska Airlines. This is not the first such suit, and it may also not be the last. But what stands out, in part, is that this law firm also filed a similar suit wherein JetBlue was subsequently blocked in its attempt to acquire Spirit Airlines.
The lawsuit spawned by Joseph M. Alioto Jr. challenges Alaska Airlines’ proposed acquisition of Hawaiian Airlines, a move already under scrutiny by the U.S. Department of Justice.
This legal action is being driven by a group of passengers. The lawsuit emerges in parallel with federal regulatory activities regarding the merger proposal.
Alaska Airlines still intends to acquire Hawaiian Airlines for $1.9 billion, as was announced in December, in a transaction that would significantly impact Hawaii’s airline dynamics. The significant combined market share of the combined airline could have some impact on reduced competition and potentially lead to higher prices.
Whether or not that would evolve, however, remains to be seen. There are other major competitors larger than the combined Hawaiian/Alaska that are highly involved in Hawaii flights, including both Southwest Airlines and United Airlines.
The lawsuit, not yet seen by Beat of Hawaii, claims that the merger would unduly change market dynamics, thereby harming consumers. It seeks judicial intervention to stop the merger initially via a preliminary injunction.
Alioto Law Firm is a name familiar in Hawaii airline news.
The same San Francisco-based law firm previously filed a lawsuit to stop the successful merger of Alaska Airlines and Virgin America. That 2017 suit was said to have been on behalf of 40+ passengers who had similar claims to those allegedly opposing the Alaska/Hawaiian deal.
That Alioto suit included similar language regarding the “proposed elimination of Virgin America by the Defendant Alaska Airlines constitutes a substantial threat of injury to the Plaintiffs because the acquisition may have the effect substantially to lessen competition and tend to create a monopoly in various markets…” Alioto also said that prior merger would have reduced flights to smaller markets, resulting in higher airfares.
More recently, Alioto filed suit against the proposed merger between JetBlue and Spirit Airlines that subsequently failed. That case document is attached below. Alioto is known for these suits attempting to block airline mergers on behalf of passengers and to prevent price-fixing.
Please share your thoughts on the proposed acquisition of Hawaiian Airlines by Alaska Airlines and this latest twist.
JetBlue-Complaint-11.3.22-2.doc
Wonder if Aliota has United Stock, they’re the largest Carrier out of SFO, 7 Codeshares, 61 U.S. Cities and 18 Countries! Spirit is in danger of BK w/o the Jet Blue Merger, if Hawaiian did the same without Alaska, prices go up, not down, AA, United, Delta calling the shots on the Fare’s as Southwest with 737 is a different animal, who’s Inter-Island will be the only game in town!
Current employee at Hawaiian here. Ir really do hope the merger doesn’t go through. From the grapevines I have heard at corporate and other credible coworkers, we would be able to survive if we don’t merge. This “bankruptcy” nonsense is fear mongering at its best and it’s funny to see people assume that.
Guessing the fact that the DOJ is so on top of this escapes you because any fraudulent statements by anyone involved would not be tolerated by the DOJ. Feel free to believe what you want but the corporate balance sheets don’t lie!