Travelers who tried to stop Alaska Airlines from swallowing Hawaiian Airlines just got something almost unheard of in corporate takeovers: a do-over. In a surprise decision this week, a federal appeals court said the lawsuit that tried to block the $1.9 billion takeover can be refiled. The move reopens a fight that most thought was over, a fight that cuts to the heart of Hawaii travel.
What just happened.
The U.S. Ninth Circuit Court of Appeals ruled Tuesday that the travelers who sued to stop the Alaska-Hawaiian merger should be allowed to amend and refile their complaint. A lower court had thrown it out this summer, saying the passengers did not prove how they would be harmed. The appeals court disagreed, saying the travelers could add specific facts about how the merger affects their travel plans to Hawaii.
While that may sound technical, it gives new life to a case that could again challenge the Alaska-Hawaiian takeover. The court’s ruling does not undo the deal. It merely lets the plaintiffs try again. Still, it is an unusual second chance in a fight most experts believed was finished.
Why this matters to Hawaii travelers.
Since Alaska’s purchase of Hawaiian closed, readers have flooded Beat of Hawaii with comments about loyalty changes, fading identity, and higher prices. For years, Hawaiian Airlines represented more than just another carrier. It was the thread connecting the islands, a familiar tone of service, and a sense of home that stretched 2,500 miles across the Pacific. Now, a handful of everyday travelers are saying once again in court what many have said here for months: this takeover hurts.
If they succeed in getting their case reinstated, the plaintiffs could force deeper scrutiny of the deal, possibly even requiring Alaska to make substantive changes. More likely, though, their effort will focus public attention again on whether Hawaii travelers and employees have actually benefited since the takeover.
The lawsuit that will not go away.
The case, filed in Honolulu federal court last April, claimed that the Alaska takeover of Hawaiian would reduce competition, raise fares, and threaten jobs in Hawaii. The judge dismissed the case for lack of standing, meaning the plaintiffs had not shown legal proof that they were personally harmed. Alaska said at the time that the lawsuit lacked merit and that the takeover would bring more routes, lower fares, and stronger service across the Pacific.
The Ninth Circuit’s new decision changes that situation. The judges said the dismissal was too final and that the travelers should be allowed to revise their claims. The opinion was short and unpublished, but it directly told the district court to let the case proceed.
What could happen next.
Don’t expect immediate changes to your Hawaii travel plans. Alaska and Hawaiian continue to operate under one parent company, and the integration of systems, crews, and frequent flyer programs is moving quickly. But this case could complicate that process if the plaintiffs convince the court they can show specific harm from the takeover.
The plaintiffs will likely file their amended complaint within the next few weeks. It will need to include concrete examples of canceled routes, higher fares, or reduced service tied to the takeover’s effects on their travel, a test that will reveal whether this challenge has real legs or keeps the debate alive a bit longer.
The larger story behind the lawsuit.
Beyond the courtroom, the question remains whether Hawaii travelers are better off today. Some say yes, but many say the opposite. One frequent flyer told us, “I have been loyal to Hawaiian for twenty years. Now my miles are frozen, my status is gone, and the airline I loved feels like a stranger.” Another wrote, “The aloha spirit left with the name on the tail.”
That emotional response runs deeper than any legal motion. It reflects a broader unease about losing a uniquely Hawaii brand and the culture of service that went with it. The takeover was sold as a win for consumers, yet for many, it feels like another piece of Hawaii slipping away.
The stakes for both sides.
While the ruling does not in any way reopen federal antitrust review, it gives the plaintiffs a legal foothold that could pressure Alaska to defend its promises more aggressively than it otherwise would. The Department of Justice, which earlier declined to stop the deal, could in theory revisit its position if new evidence shows meaningful harm to consumers in Hawaii. That outcome would be rare, but not impossible.
If the case proceeds, the plaintiffs might seek measures to preserve competition, although what that would look like is also uncertain.
What readers keep asking.
Can this case actually change anything now that the takeover is done? Realistically, probably not. But symbolically, it keeps the debate alive. It means the Alaska-Hawaiian deal is not yet settled in the minds of travelers, employees, or even the courts.
And that matters. It means Hawaii’s airline story is still being written, and the people who fly here still have a voice in what comes next.
Do you think everyday travelers can actually take on this done deal, or is this lawsuit just symbolic at this point?
Get Breaking Hawaii Travel News
I have expressed my concerns about how the Alaska takeover of Hawaiian Airlines could affect the quality of service on flights to and from the mainland. I have also expressed my hopes that Hawaiian flights maintain the 2/4/2 cabin configuration and lie flat seats in the first class cabin. The changes made in flight times to and from the mainland on Hawaiian flights is also of concern to me.
Well, for us, our Austin-HNL non-stop is gone. The solution is more expensive and with stops. We fixed that issue by moving back on-island. The issue is can Hawaiian operate on its own and I don’t think they can.
I personally have been harmed by this merger. The Boston route going away, higher mileage redemption rates, and Atmos silver has less benefits than Pualani Gold did. I’m not happy and currently waiting in Honolulu for what is probably my last ever Hawaiian Airlines flight, home to Boston.
We just returned from Hawaii. We flew Hawaiian over. It was luxurious as expected however, we made reservations on the Dreamliner which was switched to a A330 which was older. This is typical of Alaska Airlines that is based out of Seattle. Hawaiian Airlines gave us the “Aloha Spirit” which is now sadly lost. I am from the Washington area and have had numerous dealings with Alaska Airlines. In my opinion the merger was a huge mistake.
It was really a purchase. Hawaiian was unable to survive. The shareholders exchanged their stock with Alaska because Alaska paid them a premium…a significant sum over FMV.
Hawaiian was about to be buried in bankruptcy and liquidation
This is actually great news, because it’s going to put Alaska Airlines on immediate notice because all the shuffle and bait/switch with loyalty awards, point values and continuous upsell of points while simultaneously devaluing them is actually illegal;
– CFPB UDAAP 12 U.S.C. §5531
– DOT 49 U.S.C. §41712
– DOT/FTC Act Section 5
– DOT/CFPB Pending Protect Your Points Act
Best part? They already have case study of what Alaska Airlines did to Virgin America and those customers. I look forward to some justice here.
Complain all you want about losing the Aloha, corporate greed and so on, but if Alaska hadn’t thrown Hawaiian a lifeline they would have gone under. Then the Aloha, jobs and everything would be gone. The result is Hawaiian survives, and that’s better than disappearing for good.
If the merger fails and it is judged that Hawaiian is Hawaiian Airlines and there is no merger then Hawaiian will still be in bankruptcy problems. Whats the difference if Hawaiian liquidates or the planes go to auction to pay Hawaiians debts. Alaska will just purchase them at pennies on the dollar and change the name to Alaska. No Hawaiian employees, pilots, nothing. Whog wins then?
Exactly right. No other credible bidders. Only other option was liquidation.
So we now get “The rest of the story”. We started flying to Hawaii when Aloha Airlines was in business and switched to Hawaiian when Aloha closed out. We made the switch to Hawaiian in 2004 and have been quite happy with them trying to travel with them a couple times a year. Alaska’s takeover has soured our desire to continue to travel with them for several reasons. The new plan: Use up our remaining miles and say good bye to Alaska’s program. Find another carrier that has a flexible schedule out of San Diego with direct flights (And times) as our top priority.
Gene, LOL
From San Diego your options for a direct flight is Alaska.
For the Alaska Air takeover of Hawaiian Airlines lawsuit: yes, the takeover hurt us. We booked two roundtrip flights to Kona using our HA Miles for January 2026. Booked before the takeover was completed. Just this week, Atmos sent us an email rescheduling the flight times. Rather than departing at 9:30am, we must now depart at 7:00am. That hurts us as it is too early – fighting traffic to make the earlier departure time will be a logistic nightmare. Do not like the takeover one bit.
Wow. Maybe Hawaiian should have filed bankruptcy again for the 4th time based off your reporting and readers.
About Alaska Hawai’i take over and the law suit:
I’m one of the first to want Hawaiian to go back to how it was!!! But I think that the lawsuit is unreasonable and unrealistic. Why? Because Hawaiian was not doing well enough financially. This is why they had to sell! I wish it was not true – but it is! So wanting to go back while lovely and I agree ys a fantasy. At least Alaskan is keeping the name and the staff! 😍
How do I join? Alaska canceled the Hawaiian Airlines HNL-BOS route and that “harms” me. Longer travel time, higher prices, less comfortable equipment, etc.
The flight was a money loser. You can’t make a private company continue to serve a destination that was not making any money
Delta tried it too and realized quickly this was not sustainable.
You may be right, but I’ve seen no “proof” of that. The flights were always full, but perhaps only because they were charging an unsustainably low fare. Only Alaska knows for sure
We have always loved flying on Hawaiian Airlines when we visit the islands. The Aloha Spirit was obvious the minute you boarded the plane.
As recent as this summer we took our kids and grandkids and it was so special. Now I fear that Alaska will take all that away. If they must be the new owners, the must take care of the employees and the customers. Keep the Hawaiian spirit alive via the planes, the uniforms and the voices of the people.
Mahalo
It is disheartening to see how quickly Alaska stripped us of connections by moving all of the wide body aircraft to Seattle. For example, we have lost our direct connection via Hawaiian Airlines to Korea. So in just a short period of time, Hawaii is less connected than it was before.
Alaska is not moving all widebody Hawaiian aircraft to Seattle. The A330’s are still based in Honolulu. It’s the 787’s that are moving to Seattle.
It all comes down to corporate greed.
The merger which actually is a takeover should never have been approved. Alaska is 6 billion in debt and bought Hawaiian simply to get their big planes to further the Alaska brand for international flights out of Seattle.
They stripped everything that made Hawaiian so special.
Ofcourse they did not care because it is all money driven.
The issue is how they even were able to do this being so in debt themselves! Within months everything they promised has changed.
Been saying for months now they will fail. They will never be a player at the level of Delta and United because the world is not going to use Seattle has there hub.
They could have expanded the Asia market HA had already established and controlled a huge Asia market.
Again, how this was approved for a airline deep in debt (Alaska) to be approved to buy another deep in debt airline with just more credit..🙄
Your debt argument simply doesn’t hold water, @Franklin M. Repeating it doesn’t make it any truer. Yes, AAG does carry over $6 billion in debt on its balance sheet. So what? Delta carries more than 3 times that. I suspect in both cases, much of it is to pay for airplanes–and almost a billion of AAG’s debt came from acquiring HA. It’s not about the balance sheet, per se. It’s about the income statement, cash flow, and the ability to service debt.
AS isn’t trying to be DL or UA and they don’t have to be to make money. SEA is a huge untapped market and a great place to start their international expansion. HNL is not. No one not from HI wants to connect there if they can get nonstops to their final destinations. If you want to see failure, you will if HA’s rescue gets undone.
No one else stepped up as a bidder for Hawaiian. They ran down this path before and solicited outside money and investors, got money, and expanded. But this time there was no one else interested. None. Zero.
Hawaiian has debts and can’t make money. So its either sell or go out of business (and sell a fire sale)
Look at what happened with Spirit….was told they couldn’t see and each day we see them shed more employees and assets,
When I went to fill out my profile on Atmos, it would not let me use my home airport as my base, only Honolulu. Neighbor island residents in Hilo already get the short shrift, fewer flights, higher prices. I haven’t yet tried to book a flight on the new mergered deal, so don’t know if it will be a problem to book out of Hilo, but it sent up a red flag for sure.
If this lawsuit succeeds it could spell the end of mergers as we know them.
Mergers and buyouts are healthy for our economy when that activity slows or stops it leads an economic downturn.
Regardless of the buyout Hawaiian was on the way out, so the I’m losing my Aloha lawsuit is mute.
Have flown with Hawaiian Airlines many times in the past. Always enjoyed the Aloha feeling from the flight crew and even the ground crew. That was in the past. Now, the Aloha is all but gone since the Alaska Airlines takeover. It’s so sad. The food in coach is terrible as well. Our loyalty to Hawaiian Airlines is gone. If our most recent flights are the new normal for Hawaiian Airlines, we may as well fly Southwest. Hope that Hawaiian Airlines can find a way to become an independent company again. The Alaska influence since the takeover has been a disaster for passengers. I hope that it has been better for employees.
I don’t pretend to understand what the article is stating but if the suit somehow throws the decision out
You’re back to a bankrupt H A who like the govt can’t balence its books
You still need a competent corporation to run the airline
We will help & sign whatever we can to help bring this back to court. The Alaska takeover has been so terrible, in our experience that is. The costs are So much higher for hs, the routes are not good,& most importantly-more than anything else, the aloha is not felt with alaskan crew, at all! We are sneaking in a last nonstop bos-hnl next month, before it stops for good, and i can certainly guarantee there will be tears! The flight attendants know my kids and have watched them grow up. Noni has been doing it for over 40yrs! There is no better feeling, than the feeling when you see the tail of the plane pull up to the gate, board the plane to familiar faces and even if you do not know them, the familiar kindness & aloha is instantly felt. The music and this feeling is incomparable to any other airline. We fly a lot, and there is no better airline than Hawaiian was to this loyal, 24 yrs long, loyal Hawaiian flying family. We will help however we can, please keep us updated!!
I think the only way travellers can make an impact is to not fly Alaska to Hawaii. Only fly the other airlines. Then Alaska would have to lower airfares, have more flights to compete for their business strategy. I doubt the takeover can be reversed, too late for that. And it would undo a major acquisition and changeover that has reply been put into effect.
Look what Alaska done to Hawaiian’s 787s. The 787s are the future of Hawaii’s flight. Now the Hawaiian call sign and HA will be dropped. Now, if they were to drop the Hawaiian branding including the livery and experience. There will be some serious consequences, this lawsuit could undo what Alaska does.
Y’all keep having “ feelings” . The rest of us that live in the real World will continue to be realistic.
I have been flying Hawaiian Airlines for 20 years. I am saddened by the lack of the unique Hawaiian warmth that my previous trips had and are now lacking. I am also dealing with much higher prices for the same or even less services. For the first time in years we are considering dropping Maui from our twice yearly itinerary and that makes me sad.
OMG, let’s see the court get involved in a financial bailout. First off, Alaska has a wide open case with abundant documentation to show their losses since this was approved. Hawaiian had debt that no one was stepping in to relieve. Now it would be absurdly deeper in debt. How many front line workers did Alaska lay off?? This lawsuit if approved will allow the inevitable bankruptcy to happen quickly and see what pieces get sold off and which ones get left behind. History. Complaining about one’s personal dislikes about change still does not pay the bills. Let’s see how this plays out.
Much ado about nothing. AS walks away there is no HA.
HA was pau. There is no way they were going to keep the lights on. HA management was horrible.
That being said AS has went the other way. Fares and mileage awards are not good. HAs international routes are a lot better than what was found on AS.
I am taking most of my business to Delta. They have a robust international network that I am not seeing from AS and Oneworld.
I recall carl I hadn’t, corporate raider, owner of TWA, swore to sell the Al “piece by piece” to sell 50 yrs ago. Situation is very similar. I witnessed this. I. Feel bad for Hawaiian AL. I Have Been Following this story w interest.
What is needed is a strengthening of the requirements to preserve the way Hawaiian operates as a Service connecting the state. What is not required is a position where Alaska sees it as too much hassle or it gets blocked and Hawaiian closes down. That would be bad for Hawaii.