DOJ ruling imminent on Alaska-Hawaiian airlines merger amid potential concessions

There has been minimal opposition to the deal from politicians or unions in Hawaii, suggesting a possible path forward for approval despite the administration's general stance against consolidation.

Potential concessions related directly to the acquisition have been suggested:

1. **Route guarantees**: Alaska might agree to maintain existing inter-island flights or refrain from reducing capacity where it currently competes with Hawaiian.

2. **Gate space in Honolulu**: They could be required to relinquish some prime real estate at Honolulu airport to encourage competition.

Additional remedies unrelated directly to the merger have also been proposed:

1. **Gates and slots at congested airports**: Alaska might need to give up valuable assets like beyond-perimeter slots at Washington National Airport or gate space at Seattle or San Francisco airports.

2. **West Coast Alliance**: DOJ might require Alaska to choose between partnering with Hawaiian or maintaining its codeshare agreement with American Airlines.

According to Beat of Hawaii, discussions are focused on route guarantees and control over key airport spaces like Honolulu (HNL) and Seattle (SEA).

Hawaiian shareholders are anxious about the outcome since the deal promises a substantial premium; share prices are likely to fall significantly if DOJ files suit against the merger. While Alaska is paying a high price for limited assets, it stands to gain widebody aircraft and experience in transpacific flying.

For members of HawaiianMiles loyalty program, their miles would become more valuable through an expected 1:1 conversion into Alaska’s Mileage Plan if the merger proceeds without major hurdles from DOJ.