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US consumers sue to stop Alaska Air, Hawaiian Airlines merger
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US consumers sue to stop Alaska Air, Hawaiian Airlines merger
Apr 16, 2024 7:55 AM

April 16 (Reuters) - Alaska Air ( ALK ) has been hit

with a U.S. consumer lawsuit alleging that the carrier's

proposed $1.9 billion acquisition of rival Hawaiian Airlines

will lead to higher prices, job layoffs and fewer

flights.

The lawsuit was filed on Monday in federal court in Hawaii

by eight airline passengers from Hawaii, California and other

states. Some of the plaintiffs are former travel agents.

The passengers said the Alaska Air ( ALK ) deal, announced last

year, will unlawfully harm air travel competition in violation

of U.S. antitrust law.

"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,"

the lawsuit said.

Representatives from Alaska Air ( ALK ), which is the only

defendant, and Hawaiian Airlines did not immediately respond to

requests for comment.

Attorneys for the plaintiffs did not immediately respond to

requests for comment. The lawsuit appears to be the first filed

over the proposed deal.

In announcing the Hawaiian acquisition, Alaska Air ( ALK ) said the

combined company "will unlock more destinations for consumers

and expand choice of critical air service options and access

throughout the Pacific region."

The deal is under antitrust review by the U.S. Justice

Department. The airlines said in March that they "have been

working cooperatively with the DOJ and expect to continue to do

so."

A Justice Department spokesperson declined to comment on

Tuesday.

The Biden-era Justice Department successfully sued to block

JetBlue Airways' $3.8 billion agreement with Spirit Airlines.

After a judge blocked the deal, the airlines last month called

off the merger.

In another case, American Airlines has asked a U.S. appeals

court to reverse a Boston federal judge's decision that its

now-scrapped U.S. Northeast partnership with JetBlue was

anticompetitive. American Airlines said the ruling threatens

other collaborations.

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