Summary A US judge threw out a lawsuit blocking the Alaska Airlines & Hawaiian Airlines merger plans. Alaska supports the decision and claims that the merger will benefit consumers. The Department of Justice will make its decision on whether to approve the merger later this week.
A lawsuit intending to block Alaska Airlines ' planned acquisition of Hawaiian Airlines was thrown out by a US judge on Monday. Passengers who filed the lawsuit reportedly argued that the nearly $2 billion merger would reduce the combined airlines’ route network and increase prices. The Seattle-based carrier is in support of the decision, claiming the merger will only benefit the consumer.
The latest case comes as the planned acquisition has faced other headwinds since it was announced late last year. A ”substantial threat of injury” According to the lawsuit , Warren Yoshimoto, Kristin Barroga, Sean Kettley, Carolyn Fjord, Don Freeland, Don Fry, Bill Rubinsohn, and Clyde Stensrud identify themselves as “a mix of airline passengers and former travel agents.” The group asserted that “they, and the public at large, are at “substantial threat of injury.
..because the acquisition may have the effect substantially to lessen competition, and tend to create a monopoly in various markets.
..”.
Highlighting “all consumers,” the passengers said that an Alaska-Hawaiian merger would put the following at risk: The loss of inflight experiences and distinct services that are currently part of Hawai.