With the deadline for the Department of Justice’s (DOJ) decision on the Hawaiian Airlines and Alaska Airlines merger just about 48 hours away, the situation remains highly volatile. New developments suggest the possibility of an impending legal battle in some form. With two days before the extension deadline, there has been no official word, leaving Hawaii travelers, the airline industry, and investors on edge.
Today, Hawaiian Airlines’ stock reflected the uncertainty of the situation, experiencing dramatic swings—first hugely plummeting at the opening and then rebounding by the same amount it had lost. This wild volatility underscores the degree of nervous anticipation surrounding the potential merger and its far broader implications for the U.S. airline industry and for Hawaii.
DOJ makes moves towards possible litigation.
The latest information indicates that the DOJ may be preparing for legal action against the merger. Brian Hanna, a federal antitrust attorney with the DOJ’s Antitrust Division, who was involved in the case that blocked the JetBlue-Spirit Airlines merger earlier this year, has filed an application in Honolulu’s federal district court.
Hanna stated, “I expect to appear on behalf of the United States and to tend to the interests of the United States before this Court.” This move strongly suggests that the DOJ is positioning itself for potential litigation if needed to block the Hawaiian/Alaska merger.
Separate “Serial litigants” consumer lawsuit dismissed.
Alaska Airlines has, on the other hand, successfully had the lawsuit filed by a group aiming to block its planned acquisition of Hawaiian Airlines, dismissed by a U.S. district judge. The judge ruled that plaintiffs failed to demonstrate how they would be personally impacted by the merger. This issue, however, appears minuscule compared with the DOJ’s pending decision.
Is a Hawaiian deal still possible?
Given the recent developments, there’s also significant speculation that Alaska Airlines might be seeking a settlement with the DOJ to avoid a full-blown legal battle. Such a deal could involve Alaska conceding to certain conditions or making specific concessions to address the DOJ’s concerns about the merger being anti-competitive.
The DOJ’s strategy appears to be aimed at identifying and addressing what it perceives as “defects” in the merger proposal. By negotiating potential remedies with Alaska, the DOJ may be trying to reach an agreement allowing the merger to proceed without entirely blocking the deal. However, if no agreement is reached, the DOJ could still file a suit as early as Thursday to prevent the acquisition from moving forward.
The road ahead for Hawaiian Airlines.
With the DOJ’s intentions becoming clearer, the next 48 hours will be historic and crucial. The outcome of these negotiations—or the potential lawsuit—will have significant ramifications for Hawaiian Airlines, Alaska Airlines, the broader U.S. airline industry, and Hawaii travelers.
We will keep you updated as we monitor for the next developments while we head to a final decision that will shape the future of air travel in and out of Hawaii. Stay tuned for more updates as the crucial deadline approaches.
Beat of Hawaii photo onboard Hawaiian Airlines Dreamliner.
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I can’t tell for sure from the picture but it looks like it means a lot fewer window seats which I prefer and a lot more middle seats which I avoid like the plague.
Go ahead and stop the merger and see what happens to Hawaiian air, it will be the same as Loves Wanna Bet?
How or will possible pending lawsuits affect immediate (one-to-weeks) air travel on Hawaiian to the islands? I’m leaving on Aug. 19 and the worry is I’ll be stuck in transport limbo. Any information is appreciated.
Can confidently say this will have zero effect on your travel plans Pam.
Enjoy Hawaii!
If the merger doesn’t happen Hawaiian will go bankrupt. I hope this is considered in there case
will the possible merger of hawaiian air and alaska cause fright delays or cancelation of hawaiian air flights and if merger is not allowed will flights be affected
The merger/not merger should have zero effect on current flights and freight/cargo. Until the merger goes through, each airline must continue to operate as independent competitors. Anything less than that would definitely catch the eye of the DOJ and potentially ruin the chances of the merger happening. If the merger happens not much will change until the backend system can be integrated.
Mahalo for keeping us posted! I hope the merger goes through because they are both my go to airlines. I would love to consolidate my miles and credit cards.
How can this be considered a monopoly when u have three airlines flying Interisland and several major carriers flying into every major Hawaiian airport except Hilo .. The merger will most likely enhance services for the under serviced airports .. Hawaiian is struggling and is not able to offer more flights to more destinations at this time ..
My question is how can Alaska Air buy out Hawaiian Airlines if they have recently been bought out by American Airlines?
HI Patricia~ Do not believe that American has bought or made a proposal to acquire Alaska. They are OneWorld partners but operate independently. Or maybe you know someting we do not! Cheers
Thanks for the update. Keep us posted. This will affect many people’s decisions on making travel plans to go there.
Good day~ Middle of the road possibility here. AS/HA give a little to get a little, with the merger going thru. Drum roll please. Cheers
What really confuses me about the merger and the DOJ, is that the DOJ is making the decision on the merger, but in turn is ready to file suit against the merger. Seems like the government is in full force of not knowing what the left hand is giving the right hand.
The DOJ almost always files a lawsuit in airline mergers and almost never allows a merger in any industry to proceed without conditions. Conditions are listed in a lawsuit filed in federal court by a US attorney. A DOJ attorney filing an intent to appear motion provides no insight into the success or failure of the proposed transaction.
Look , DOJ, if you really want to help the American people, stop worrying about us traveling ( leisure ) how about taking care of the food industry, Kroger, Safeway, Albertsons, Piggly Wiggly, and stop them from manipulating this country with food cost, talk about unfair when they used to be 50 different grocery stores now it’s down to a handful, and oil companies, electric, and so on , stop , Brain Hanna , be a help to the American people, not a problem…….
Just the crazy volatility in HA stock makes it clear no one knows how this is going to shake out.
You nailed it Bob! Going to find out soon….I think
It seems that the parties are all scurrying around trying to see if there’s something they can all agree on in order to not get blocked by DOH.
Worth looking into the granting of building permits on burned lots on Maui. Out of >1000 applications, only 47 have been approved. And they want to confiscate 7000 condos from out of state rental owners???
Which has exactly what to do with the possible merger between Hawaian and Alaska airlines?