Adding to a myriad of other concerns, a new challenge in the Alaska/Hawaiian Airlines deal just surfaced, Plus more developments are unfolding..
Adding to a myriad of other concerns, a new challenge in the Alaska/Hawaiian Airlines deal just surfaced, Plus more developments are unfolding..
The shareholder who filed the lawsuit is just trying to squeeze
more money for themselves out of the deal.
Could very well be Lee….It’s not just corporate raiders like Carl Ichan and Frank Lorenzo that are happy to cost thousands of workers their livelihoods if they can make money doing it. Safe to say any headwinds this merger encounters likely will be from competitors that fear it or people trying to line their pockets….or politicians in the pocket of the competitors….geez, I sound pretty cynical
I don’t get the short sighted backlash against this merger. No one is going to pay more for an withering airline with a terminal business model destroyed by the lockdowns. Without this merger, Hawaiian Airlines will not exist by the end of 2025, the stock will be worth zero and thousands of locals will be unemployed.
If this deal doesn’t happen then Hawaiian could go out of business. To much debt and many aircraft to replace.
Such a waste of time and money and energy. If Hawaiian goes belly up what would this shareholder get: zilch.
The merger creates a stronger position in the market for both Hawaiian and Alaska…..for sure their competitors don’t want that. Have to wonder who is doing what behind the scenes….there’s always more to the picture. Can’t see how anyone can successfully argue this is bad for the shareholders…..if someone was willing to pay more they are free too. Or standing alone with 900 million debt and at the mercy of the next unpredicted disaster? That would somehow be better?
To the shareholder(s) who fifled the suit, I say be careful what you wish for. Hawaiian is financially in trouble and if the merger does not go through and Hawaiian declares bankruptcy or shuts down, what will their shares be worth then? I say take the offer and run. It’s risky to not allow the merger for the health of Hawaiian airlines.
Stop the merger, let the airline die and everybody will be happy.Then later on everyone will lament this should not have happened.
Someone should do some research on who this person is who filed the lawsuit, and why it was filed in the Southern District of New York. That jurisdiction has a strong record of cases going in one direction! And it’s thousands of miles from Hawaii or Alaska! Why wasn’t the lawsuit filed here in Hawaii, instead? Likely because it would go nowhere. Hawaii residents don’t want Hawaiian Airlines to die in bankruptcy, like Aloha Airlines did. We want options. We don’t want Southwest Airlines to be our only interisland options. Perhaps some wealthy “shareholders” care about themselves more than they care about 1 Million Hawaii residents.
No reason to file in Hawaii. NY is where many financial transactions occur and may very well be where stockholder has standing. Plus (not a financial expert) but since it is a traded stock, Im assuming that due to NASDAQ being in NY it may have something to do with it, or that law firm is based there.
Greg, the reason this lawsuit should have been filed in either Hawaii or in Alaska are social (“Aloha Spirit”), and not financial. If the goal is purely money, then yes: file in New York City’s Southern District, and then the New York City’s 2nd Circuit Appeals Court can hear any appeal. Neither court judges nor juries in NYC likely give 2 hoots for the desires of Hawaii’s residents. The above story does not say which Airline stock that this stockholder owns. The Ethical (“Pono”) thing to do would have been to not file at all, or at least to file in one of the 2 States most affected.
This kind of lawsuit would have to be in federal court. There are very complex and specific jurisdictional rules where lawsuits can be filed and heard. If it is in the wrong location the court/judge can dismiss the suit due to lack of jurisdiction.
So shareholders of Hawaiian Airlines are getting a higher price for their currently owned stock and that person is whining about that!? So much for diminished shareholder value. They are certainly funny, just not in a good way.
Just wondering if they do merge, will Hawaiian airlines still have direct flights from Arizona to Honolulu?
I would think the route itself will survive. Alaska doesn’t currently fly out of Sky Harbor, so there isn’t a possibility of duplicate flights. Now, whether the flight is still via an HA flagship plane versus an AA plane would remain to be seen.