by Donald Wood
Last updated: 12:30 PM ET, Tue April 16, 2024
As Alaska Airlines continues to work on its acquisition of Hawaiian
Airlines, the carrier is now facing a United States consumer lawsuit that
claims the merger would result in higher prices, job layoffs and fewer flights.
According to Reuters.com,
the lawsuit was filed in a Hawaiian federal court by eight airline passengers
from Hawaii, California and other states, including several former travel
agents.
The disgruntled travelers claim the proposed
$1.9 billion acquisition of Hawaiian Airlines by Alaska Airlines “will
unlawfully harm air travel competition in violation of U.S. antitrust law.”
As part of the lawsuit, the impacted passengers said, “The
current trend toward concentration, the lessening of competition and the
tendency to create a monopoly in the airlines industry is unmatched,
unparalleled, and dangerous.”
In response, an Alaska Airlines representative told Reuters
that federal consumer lawsuits like the one it currently faces are a “normal
occurrence in public company mergers.” Hawaiian Airlines did not comment on the
case.
In February, Alaska Airlines cleared a major hurdle in its
attempt to acquire Hawaiian Airlines by gaining
approval from stockholders of both companies. The two carriers also reached
a timing agreement with the Department of Justice, which is part of the review
process.
The timing
agreement shows that Alaska Airlines and Hawaiian Airlines have complied
with a request to provide further information about the proposed deal and will
leave the final decision to approve or veto the merger to the Department of
Justice.
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