It is clear that the US government has never supported airline mergers. This is evident in the current merger, which the company opposes, and will come back into focus as Alaska Airlines attempts to complete its acquisition of Hawaiian Airlines over the next year.
“The airline industry is becoming less competitive, and consumers are feeling the effects. Currently, the four largest airlines – American Airlines, Southwest Airlines, Delta Air Lines, and United Airlines – control 80% of the domestic market. This is more than at any point in the history of modern civil aviation.”
“The proposed JetBlue-Spirit merger is just the latest threat to consumers in this long series of mergers.”
US Senator Elizabeth Warren
The government continues to steadfastly block developments that could be seen as anti-consumer, as exemplified by the current attempt to merge JetBlue with Spirit Airlines.
While previous smaller airline mergers, such as the Alaska-Hawaii merger, may have raised no issues from U.S. regulators, negative sentiment toward airline mergers quickly grew and Hawaiian And in Alaska, (737) MAX (sorry for the pun) will be tested.
The two Hawaii-based airlines have made it clear that their partnership is not anti-consumer, and that they believe there are only a small number of routes that overlap. It may not be relevant to lawsuits filed by regulators.
The US government’s feeling is that airline mergers are not in the public’s interest and that it is the Justice Department’s job to intervene. The U.S. Department of Transportation also believes it may have a say in whether the bill passes. This change followed airline mergers, with American Airlines acquiring his US Airways in 2013, United Airlines acquiring Continental in 2010, and Delta Air Lines acquiring Northwest Airlines in 2008.
Rulings were awaited in prior mergers in Hawaii and Alaska.
There is currently a pending ruling regarding the partnership between JetBlue and Spirit Airlines. If the bill passes, as many analysts predict, the Alaska-Hawaii marriage will likely be a disaster. But otherwise, the deal could face insurmountable headwinds.
Hawaiian Airlines without the Alaska acquisition.
It’s unclear whether Hawaiian Airlines can survive on its own any longer. Hawaii’s small standard-bearer continues to struggle with a decline in Hawaii travel post-COVID-19, especially with international travel not returning to normal for an extended period of time.
See also: Could Hawaiian Airlines Survive Without the Alaska Agreement? A world of emotions and change.
And in 2023, the company felt the brunt of the effects of the Lahaina fires. Add to that the Airbus A321neo’s engine problems, ongoing repairs, and ongoing technical and infrastructure issues. In addition to extreme debt, airlines In 2024, another $300 million will be lost.
Are you in favor of merging Hawaii and Alaska? What do you think will happen?
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