United Airlines is wary of how it stands to be affected by Alaska Airlines’ proposed $1.9 billion acquisition of Hawaiian Airlines, it has told the US Department of Transportation (DOT).
In a 27 August notice of communication, the DOT disclosed that Robert Rivkin, United’s chief legal officer, had spoken with the department’s deputy general counsel Brian Stansbury about United’s concerns.
”Mr Rivkin expressed concerns regarding the potential impact of a merger between Alaska Airlines and Hawaiian Airlines on the cooperation agreements between United and Hawaiian Airlines,” the DOT says. ”He noted that United has interline, codeshare, special prorate and loyalty agreements with Hawaiian Airlines.”
Notably, Hawaiian is not currently part of a major airline alliance. It appears unlikely that United, a Star Alliance member, would continue its relationship with Hawaiian should it join Oneworld via its combination with Alaska.
United’s concerns are raised as the proposed tie-up recent passed a key regulatory hurdle. On 20 August, Alaska and Hawaiian said that the US Department of Justice completed its antitrust review of the deal without objection.
The carriers still must clear the next step – approval from the DOT – in addition to other “customary closing conditions”. Upon announcing the deal in December, Alaska estimated that closing it would take 12-18 months.
Some analysts view the combination as a good fit, as the carriers have highly complementary networks and the potential to double down on already-strong positions on the West Coast of the USA.
