The proposed $1.9 billion merger between Alaska Airlines and Hawaiian Airlines is proving to be anything but smooth. When it seemed clear skies were ahead, United Airlines swooped in today, raising new concerns to the U.S. Department of Transportation (DOT).
United isn’t about to let this merger soar easily, fearing it could negatively impact its existing agreements with Hawaiian Airlines and potentially reshape the competitive landscape in the Hawaiian skies. It looks like this deal might suffer some further turbulence before it lands safely.
United’s concerns: protecting legacy agreements.
United Airlines has flagged potential risks to its cooperation agreements with Hawaiian Airlines. Those include interline, code-share, and loyalty, among others. The agreements allowed United to book Hawaiian-operated flights under its own code and vice versa, providing more seamless travel options for travelers and expanding United’s network. Of course, the fear is that the Alaska purchase will shift Hawaiian Airlines away from United in various ways, with the potential for negative impact on United’s revenue and loyalty program.
The DOT’s approval is still pending despite Alaska Airlines clearing the DOJ.
DOJ has not challenged the merger on antitrust grounds. United’s concerns, however, have brought fresh scrutiny to the merger, potentially complicating its path forward, which now lies with the DOT. They may impose conditions or seek concessions from Alaska Airlines to maintain a fair competitive environment, ensuring that the six airlines serving Hawaii don’t find their consumers adversely affected as a result.
The outcome of the DOT deal review remains unknown, and multiple possibilities await. First, the merger may still go ahead without significant concessions. On the other hand, the DOT might impose conditions that could change the nature of the deal.
Where United Airlines might stand in this could include continuing its agreements with Hawaiian or seeking new partnerships to mitigate any negative impacts. This announcement comes at the same time as Southwest says that it is open to such arrangements with other airlines for the first time.
A still-evolving story with a high stake.
The Alaska-Hawaiian merger, seen on and off as relatively straightforward, continues to be complex with today’s latest United Airlines objection. As the DOT review continues, we’ll all await the next developments, which will undoubtedly have far-reaching implications for the future of Hawaii travel.
Ua is right and finally chelendging this anti competive merger and proving that the relationale of making it easier to fly to/from hi is not true. As is a regional airline with a few flights points east which will not have any marginal effect on making hi travel easier. I had to fly from koa to bos and it took 2 long flights and needed medical attention after spending 11 hrs in thier hard tack reccoro seats. I see the long haul flights from bos,jfk going away so they can sell those planes and limit to flying on the max death plane.
I agree with Franklin M. United airlines has no special service to or from Hawaii. It is just like a bus ride! They have taken the screens out of most of the planes now. It you want to watch a movie on the long trip to Hawaii you have to pay to use United’s internet and use your own cell phone. It was so nice when they had movies to watch.
I like the merger. I’m not too wild about United Airlines. I don’t fly them anymore.
This will not stop the merger. I understand United’s concern.
However the compromise will have to involve Alaska Airlines too.
For the record I don’t like United’s service to / from Hawaii. Just feels like a domestic flight. (Like a bus ride) No special service of any type. For the record American is no better then United.
I live in Maui and will not fly anyone but Hawaiian to mainland.
Ouch!
I think Delta uses Hawaiian Airlines as some kind of partner if your flight is cancelled through Delta. I would think they would have some two cents input regarding the merger also. Once United play’s their hand let’s see if Delta follows suit. Just a thought.
This should ultimately be decided by “we, the consumers”, not the DOT, DOJ, and especially not by United Airlines. More competition means better competitive prices for “We , the consumers”, these airlines have been sticking it to us for years.
Barry…where you been the last 30 years…Government agencies (like DOT) couldn’t care less about the will of the people and constantly seek to expand their reach not to mention they know more about what’s best for you than you do…