Consumer Lawsuit Over Alaska and Hawaiian Airlines Merger Rejected by Judge

A consumer lawsuit seeking to block Alaska Airlines’ $1.9 billion plan to buy Hawaiian Airlines has been thrown out by a U.S. judge.

Chief U.S. District Judge Derrick Watson ruled Monday that airline passengers who brought the case, over concerns about routes being cut and prices being raised as a result of the deal, did not show they had legal standing to sue over the merger, according to a report from Reuters.

“They allege no personal connection to either airline that would plausibly establish a concrete or particularized harm,” Watson wrote in his dismissal.

The suit, which alleges that the merger violates anti-trust law, had been filed by eight airline passengers from Hawaii, California and other states.

The lawsuit 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.”

This week’s court decision was applauded by Alaska Airlines, which issued its own statement on the matter indicating that the merger will "expand benefits and choice for consumers.”

The plaintiffs in the case, meanwhile, have not given up hope. The consumer’s attorney, Joseph Alioto, said they intend to ask a U.S. appeals court to instead block the merger.

Alaska Airlines Boeing 737 Max 9 at takeoff. (Photo Credit: Laser1987/iStock Editorial/Getty Images Plus)

Alaska Airlines proposed last year to acquire Hawaiian.

Since then, a variety of hurdles have been cleared as the merger has advanced. In March, for instance, the two carriers reached what is known as a timing agreement with the Department of Justice (DOJ), which is part of the review process.

That means Hawaiian and Alaska have consented to a stipulation that prevents the finalization of their merger. A final decision will be made by the DOJ, which reserves the right to veto the deal.

It remains unclear whether the DOJ is indeed going to block the merger between the two airlines from moving forward. An investment publication indicated in July that the deal may eventually end up being scuttled by the government.

“The Department of Justice is unlikely to approve its planned $1.8 billion sale to Alaska Air. The antitrust regulator is preparing to challenge the combination,” wrote Seeking Alpha, as quoted by Beat of Hawaii.

The DOJ review period is slated to be wrapped up by Thursday, August 15.

According to the Reuters report, a spokesperson for the department did not immediately respond to a request for comment about the court ruling on the matter.

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