Summary
Alaska Airlines facing concerns over a potential monopoly in the aviation market.
Hawaiian Airlines’ 66 aircraft, including Boeing 787s, to form part of the acquisition deal.
Potential merger would allow both carriers to operate separately with a combined frequent flyer program.
Alaska Airlines has agreed to an extension to the review period of its proposed $1.9 billion acquisition of Hawaiian Airlines. The review period with the US Department of Justice (DoJ) has now been extended to August 20th.
Photo: Austin Deppe | Shutterstock
The merger deal between Alaska Airlines and Hawaiian Airlines was announced in December last year, and both carriers have since been working with the DoJ to determine some of the finer details of the agreement. The deadline for this review period was originally due to end on August 15th, but was subsequently extended by one day to August 16th, and has now had a further four-day extension.
A majority market share for Alaska Airlines
The proposed merger would grant Alaska Airlines a more than 50% market share on flights to Hawaii, raising concerns about a lack of competition in what is a lucrative market and the impact this may have on ticket prices. JetBlue’s planned $3.8 billion acquisition of the ultra-low-cost carrier Spirit Airlines was blocked earlier this year for the same reason.
Photo: Angel DiBilio | Shutterstock
Simple Flying reported last month that the DoJ was seeking to challenge Alaska Airlines’ planned acquisition of Hawaiian Airlines, which sent the latter’s share price tumbling. However, the proposal was given a boost earlier this week when a lawsuit attempting to block the merger on the grounds of a monopoly being created in the market was thrown out by a judge.
Find out more: Judge Dismisses Lawsuit to Block Alaska Airlines’ $1.9 Billion Hawaiian Deal
A group of passengers attempted to sue the carriers due to fears that a merger would “lessen competition.”
If the merger goes ahead, the two carriers would continue to operate as separate brands, albeit with a combined frequent flyer program. Hawaiian Airlines would form part of the Alaska Air Group, and as a result, would become a member of the oneworld alliance. Alaska Airlines joined the alliance in March 2021 as its 13th full member, joining the likes of American Airlines, Cathay Pacific, Qatar Airways, and Qantas, in what is the world’s third-largest airline alliance.
Acquisition of Hawaiian Airlines’ 66 aircraft
The latest data from ch-aviation shows that Hawaiian Airlines’s fleet currently consists of 66 aircraft, with an average age of 10 years old, which would also become part of the Alaska Air Group under the planned acquisition. This includes 18 Airbus A321neos, 24 A330-200s, and 19 Boeing 717s (Hawaiian Airlines is one of the last remaining operators of the 717).
Photo: Phillip B. Espinasse | Shutterstock
The airline is also awaiting delivery of a further 10 Boeing 787-9s, to join the two already in the fleet. These will help to grow its mid- and long-haul footprint across the Pacific and beyond.
Find out more: Kapuahi Takes Off: Hawaiian Airlines’ New Boeing 787 Dreamliner 1st Flight To San Francisco Airport
Hawaiian Airlines’ first Boeing 787-9 has completed several return flights between Honolulu and San Francisco.
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Publish date : 2024-08-15 05:17:00
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