Alaska Airlines (AS, Seattle Tacoma International) has welcomed a decision from the US District Court of Hawaii to dismiss a lawsuit seeking to block its USD1.9 billion proposed acquisition of Hawaiian Airlines (HA, Honolulu).
"We are pleased with the court's decision in this case. We continue to believe this proposed combination will expand benefits and choices for consumers in Hawaii, the continental United States, and globally. We remain committed to working through the regulatory review process," it said in a statement shared with ch-aviation.
In an order handed down on August 12, the court granted a motion by Alaska Airlines and parent Alaska Air Group to dismiss the suit brought by eight alleged passengers and travel agents on April 15. The court found that the plaintiffs - who claimed the merger would exacerbate industry consolidation, reduce competition, and increase fares - lacked legal standing as they did not demonstrate "concrete or particularised harm" from the deal.
Hawaiian Airlines was not a defendant in the case. According to Reuters, the plaintiffs' attorney has announced plans to appeal the decision.
Among other things, Alaska Airlines claimed the plaintiffs were "serial litigants" who had unsuccessfully challenged nearly every airline merger in recent US history and had "recycled the same boilerplate allegations" they had directed at other airline mergers.
The merger still awaits a decision by the United States Department of Justice. On August 14, it was revealed that the deadline by which the DOJ needs to conclude its review had been extended by 24 hours to August 16.
The parent companies of both airlines, Alaska Air Group and Hawaiian Holdings, announced their agreement to merge on December 2, 2023. As part of the deal, Alaska will assume USD900 million of Hawaiian's debt. The carriers plan to continue operating under their existing brands while integrating their operational systems.
