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United raises concerns over Alaska-Hawaiian merger in DOT discussions

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United raises concerns over Alaska-Hawaiian merger in DOT discussions
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United Airlines has raised concerns with the Department of Transportation (DOT) regarding Alaska Airlines' proposed acquisition of Hawaiian Airlines. In a filing, United disclosed a conversation with the Deputy General Counsel at the DOT to avoid any improper ex parte communication over an active matter before the department. United declined to comment further on the matter.

The airline highlighted its existing partnerships with Hawaiian Airlines, including interline agreements, codeshare agreements, prorate ticketing agreements, and loyalty program agreements. These arrangements generally allow customers to include Hawaiian Airlines flights on United tickets. Post-merger, United hopes that these agreements will continue and is advocating for favorable terms.

Currently, United is the largest airline operating between the mainland and Hawaii. The market for inter-island travel in Hawaii is highly competitive, with low load factors and fares as Hawaiian Airlines and Southwest Airlines compete aggressively. Despite viewing the merger as unfavorable for itself, United acknowledges that this may not necessarily be detrimental to competition overall.

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Alaska's potential decision to discontinue working with United could complicate passenger connections between Hawaiian islands for United. Meanwhile, Southwest Airlines has been exploring partnerships with other carriers to improve its inter-island flight economics. Notably, United also possesses traffic rights to enter this market independently.

United's intervention in discussions about airline mergers typically aims to secure benefits for itself rather than advocate for consumers directly. The ultimate stance of DOT on settlement conditions permitting Alaska’s acquisition of Hawaiian remains to be seen.

(HT: @crucker)

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