Antitrust Regulators Review Alaska Airlines' Planned Acquisition of Hawaiian Airlines

Consumers' Lawsuit Challenging Merger Dismissed

Alaska Airlines has filed a motion with a US District Court, seeking to dismiss a consumer lawsuit attempting to block its proposed $1.9 billion acquisition of Hawaiian Airlines. The lawsuit alleged the merger would harm consumers by reducing competition and leading to higher airfares.

Justice Department Review Ongoing

The US Justice Department is currently reviewing the proposed merger, and has until August 5th to decide whether to challenge it on antitrust grounds. Antitrust regulators are concerned that the deal could reduce competition in the airline industry, particularly in the lucrative Hawaii market.

Political Climate May Impact Decision

Some analysts believe that the current political climate may influence the Justice Department's decision. The Biden administration has taken a more aggressive approach to antitrust enforcement than the previous administration, and has filed several lawsuits to block mergers.

Hawaiian Airlines Stock Falls on Merger Concerns

Shares of Hawaiian Airlines have declined amid concerns that the Justice Department may move to block the merger. Investors are worried that the deal could collapse, or that the airlines may be forced to make significant concessions to antitrust regulators in order to win approval.