In a move that would unite two of America’s most ‘offshore’ airlines, Alaska Airlines is buying Hawaiian Airlines in a $1.9 billion deal that also includes Alaska taking on $900 in Hawaiian debt.
The two airlines both fly routes from the U.S. to Hawaii, but differ in their network patterns. Hawaiian flies to various Hawaii airports from various U.S. cities and also has routes to Japan, while Alaska’s Seattle-based network pattern is based on a strong West Coast network and a number of transcontinental routes.
The airlines say the two names would remain, although they would operate on a single certificate and would exist on “a single operating platform,” details undefined, and would seek to negotiate with its unions as a single entity.
The deal is subject to government approval, which is an uncertain prospect, as the Justice Department has recently opposed a number of airline agreements, winning an end to the JetBlue/AA Northeast Alliance and continuing with a suit to prevent JetBlue’s acquisition of Spirit Airlines, claiming that the effect would be anti-competitive.
Alaska is likely to use arguments similar to JetBlue’s—claiming that competition would be served by stronger smaller airlines in a market that’s 80% in the hands of the four largest airlines, a situation resulting from the government permitting mergers of American and TWA, Delta and Northwest and United with Continental.
