Pago Pago, AMERICAN SAMOA — The planned merger between Hawaiian and Alaska airlines has hit a glitch in the $1.9 billion deal with some experts saying it will likely only delay the merger.
United Airlines is concerned about what a merger will mean about its existing agreements with Hawaiian Airlines.
According to the United website, its customers can gain reward miles even when they fly inter-island on Hawaiian.
“It is a lucrative type of agreement between airlines.”
A letter from United to the DOT expressed concerns about the impact of the merger on these existing agreements.
Patrick McNamee, who flew for United and Continental for 37 years, said the concerns about business impact make sense given that the airline has a long history operating in the state.
“I started working for them back in 1987 here in Hawaii. The biggest carriers were United, Northwest and Continental,” McNamee told HNN.
McNamee believes that other airlines operating in Hawaii will also write letters of concern.
“United shot the first bullet across the bow. Trust me, Southwest is going to be there by tomorrow,” added McNamee.
Alaska Airlines issued the following statement: “We continue to believe this combination will enable a stronger platform for growth and competition in the United States, long-term job opportunity for employees, and continued investment in local communities and environmental stewardship. We will continue to cooperate with the DOJ in this review process.”
The merger has strong support from state officials, including Hawaii’s Gov., Attorney General, and lieutenant governor.
Hawaii Governor Josh Green wrote to the DOT saying in part,
“By the joining of these two airlines, a stronger company will emerge with Hawaiian Airlines costumers benefiting from being a part of a larger carrier with more resources, increased options for residents, and enhanced competition.”
The governor noted that even with a merger, Alaska and Hawaiian would still be “a distant 5th in size” among airlines.
Forman believes the merger will still be approved, but it will likely be delayed as the DOT works to address concerns.
“It’s not a showstopper at all because worse case situation, the DOT says Hawaiian you got to keep these agreements open to United,” said Forman.
That’s in part because the proposed merger cleared a major hurdle when the Department of Justice issued no objections to it.
There is no timeline for when the DOT will be done with its final review.
Hawaiian Airlines had not released any statement at press time.