Alaska Airlines, Hawaiian Airlines Merger Faces Antitrust Scrutiny
BREAKING STORY
WEB May 17 Reuters - Alaska Airlines has filed a motion to dismiss a consumer lawsuit over the carriers' proposed $2.6 billion acquisition of Hawaiian Holdings.
Background:
The proposed merger has drawn scrutiny from antitrust enforcers, with the Department of Justice (DOJ) reportedly investigating the deal. The DOJ is concerned about the potential impact of the merger on competition in the Hawaiian market and on travel costs to and from the state.
In a separate development, a shareholder has filed a lawsuit against the proposed merger, alleging that it undervalues Hawaiian Holdings. The lawsuit claims that Alaska Airlines is taking advantage of the pandemic's impact on the airline industry to acquire Hawaiian Holdings at a bargain price.
Alaska and Hawaiian have defended the merger, arguing that it is necessary to create a stronger airline that can compete with larger carriers. They also claim that the merger will not significantly reduce competition in the Hawaiian market, as they have limited route overlap.
The outcome of the antitrust investigation and the shareholder lawsuit remains uncertain. However, the uncertainty surrounding the deal has caused the stock prices of both companies to decline in recent days.
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