Consumers Sue to Block Alaska Air, Hawaiian Airlines Merger

A group of U.S. consumers filed a lawsuit in federal district court on April 16, 2024, to halt Alaska Air’s proposed $1.9 billion acquisition of Hawaiian Airlines. The lawsuit alleges the merger would create a monopoly in several key markets, ultimately harming consumers.

The plaintiffs argue that the combined entity would dominate air travel between the continental United States and Hawaii. This dominance, they contend, would decrease competition, resulting in higher airfares, reduced flight options, and potential job losses within the airlines.

Furthermore, the lawsuit highlights potential negative consequences for Hawaii’s economy and residents. The plaintiffs express concern that a merged airline might prioritize its interests over the needs of the Hawaiian tourism industry, potentially impacting visitor numbers and local businesses.

The lawsuit represents a significant hurdle for the proposed merger. Alaska Air and Hawaiian Airlines will need to address the concerns raised by the plaintiffs and convince the court that the merger will not have an anti-competitive effect. The outcome of this legal challenge will be closely monitored by the airline industry, consumer groups, and residents of Hawaii.

The U.S. Department of Justice (DOJ) and other regulatory bodies may also weigh in on the merger. These entities are responsible for ensuring airline mergers comply with antitrust laws and do not stifle competition within the industry. Their potential intervention could further complicate the Alaska Air-Hawaiian Airlines deal.

The lawsuit underscores the importance of antitrust regulations in protecting consumers from the potential negative consequences of airline mergers. If successful, it could set a precedent for future challenges to airline consolidation attempts.