The proposed merger between Alaska Airlines and Hawaiian Airlines, valued at $1.9 billion, has seen a new twist as a U.S. judge dismissed a lawsuit that aimed to block it. Chief U.S. District Judge Derrick Watson ruled on Monday that the group of airline passengers who filed the suit lacked legal standing. Watson's order, as quoted by Reuters, stated they "allege no personal connection to either airline that would plausibly establish a concrete or particularized harm."
While the lawsuit, which claimed that the merger would lead to reduced routes and higher prices, has been set aside, the story is far from over. Alaska Airlines has hailed the decision as a win for consumer choice and benefits, but Joseph Alioto, the attorney for the consumer plaintiffs, has indicated a plan to appeal with a higher court, according to statements obtained by Reuters. Meanwhile, Alaska and Hawaiian Airlines' stocks have responded to the unfolding events with Hawaiian's shares jumping 6%, whereas Alaska's dropped by 2%, as reported by Hawaii News Now. Regulatory review by the U.S. Justice Department is still pending on this deal, which, if approved, would mean significant reconfiguration for the airline industry.
The plaintiffs in the suit had argued that the alliance would contravene U.S. antitrust law, a stance that led them to seek judicial intervention in April. They claimed that the current trend toward concentration in the airline industry was "unmatched, unparalleled, and dangerous," as per Reuters. Alaska Airlines rebuffed these charges, stating instead that the merger would benefit customers by providing more travel options, and labeled the plaintiffs as "serial litigants."
As the deadline for the Justice Department's decision was extended from today until tomorrow, this short postponement hints at last-minute discussions, but no definitive insight into the government's stance has been made public. "What it all means, no one is quite sure," as stated by Hawaii News Now.
