DOT considers conditions on Alaska-Hawaiian merger amid intensified lobbying

United can operate flights between Hawaiian islands or partner with Southwest Airlines if desired. Despite sufficient competition and low fares on inter-island routes, United prefers overwater flights to Hawaii and selling connecting tickets between islands via Hawaiian at negotiated rates. They seek federal intervention to ensure this continues under Alaska's ownership.

In compliance with disclosure requirements for conversations about pending matters, Hawaii's Attorney General reported discussions with Mohsin Syed, Chief of Staff for DOT Secretary Pete Buttigieg, and Brian Stansbury, Deputy General Counsel for DOT. The State of Hawaii and its Governor have publicly supported the merger.

Alaska Airlines has reassured stakeholders about its plans for Hawaiian Airlines. However, Hawaii’s Attorney General seeks binding commitments from Alaska regarding these assurances.

Under the Airline Deregulation Act, state-level commitments are non-binding unless tied to explicit agreements like air service contracts. Nonetheless, DOT could mandate such commitments as a condition for merger approval.

Attorney General Lopez discussed with DOT officials the future commitments made by Alaska Airlines concerning Hawaiian Airlines and their enforceability. Lopez emphasized protecting Hawai'i residents' interests in this merger.

Hawaii's concerns include maintaining affordable inter-island travel and preserving flight frequencies when retiring Boeing 717s. They aim to avoid reduced flights or smaller planes that could increase fares. Additionally, there is concern over repurposing Hawaiian’s Airbus jets for non-Hawaiian routes by Alaska.

While discussions about aircraft types might seem trivial, they reflect deeper issues about ensuring current fleet operations remain focused on Hawaiian routes rather than being redirected elsewhere by Alaska post-merger.

With DOT yet to approve the deal, stakeholders are voicing their demands now. Support from Hawaii’s politicians has facilitated progress so far. It is anticipated that some promises made by Alaska will become binding commitments enforced by federal authorities.

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