Summary Government agencies are still reviewing the Alaskan-Hawaiian Airlines' merger to minimize the impact on competition. Alaska Airlines' previously published statement now also reflects an ongoing government review. Both Alaska and Hawaiian Airlines operate overlapping routes between the US mainland and Hawaii.
There’s still some haze over the proposed merger of Alaska-Hawaiian Airlines, as several reports are now examining the slight change in the language of Alaska’s official statement regarding the clearance of the DOJ review period. While the two airlines are waiting for the next steps, some believe that the relevant government agencies will still review some overlapping routes of Hawaiian and Alaska and how they may be affected following the merger. Overlapping routes Earlier this week, Alaska Airlines released a statement that the time period set aside for the investigation under the HSR Act had expired and that it was awaiting the next steps in the process of acquiring Hawaiian Airlines.
However, many believe that relevant agencies are not quite done yet with their review of the merger and its potential impact on certain overlapping routes. Seeking Alpha , a content service provider on financial news, cites a report from CTFN that says the Departments of Justice and Transportation will review some overlapping routes of the two airlines that are likely to see a 2-to-1 reduction. Alaska Airlines and Hawaiian Airlines operate regular scheduled services from the US mainland to the islands of Hawaii.
Many of these routes, such as those from major cities on the West Coast, including Los Angeles, San Francisco, Seattle, Portland, and San Diego, overlap and face an overall reduction in service following the merger of the two carriers. Slight change in the press release There’s also been a slight change in the official statement by Alaska Airlines that was released on August 19. While the carrier maintains that the time period during which the parties were prohibited from closing under the HSR Act has expired, it has added, The government’s review is ongoing.
Alaska continues to say that the merger still requires other regulatory approvals, including one “from the U.S. Department of Transportation (DOT) of an interim exemption application.
” However, tweaking the statement to now reflect that the government is still reviewing it has led many to believe that the two carriers aren’t as close to the finish line as previously thought. A closer look at the advantages that the merger could bring to passengers and the people of Hawaii The DOJ and Alaska extended the statutory review period twice, suggesting that there were some issues that needed to be resolved, particularly related to overlapping routes. As with most airline mergers, regulatory authorities want competition to be as unaffected as possible and often require commitment on some key routes.
Long process Bringing together two airlines is a lengthy process, and the Alaska-Hawaiian merger is no exception. Last year, in July, the two carriers took the first official step towards a merger with an application to the DOT, and since then, there have been several developments. Reports surfaced that the DOJ likely opposed the merger, sending Hawaiian stocks to tumble in July 2024 .
Some passengers also filed a lawsuit stating that the merger would reduce services on some routes and increase airfares. A judge recently dismissed it. And after two extensions, it seemed that a major hurdle was cleared when the DOJ investigation period expired.
It’ll be interesting to see how this develops further in the coming weeks and months..
