Antitrust Advocacy Groups Urge DOJ & DOT to Block Alaska-Hawaiian Merger

December 18, 2023 Press Release

Washington, D.C. — A group of seven competition and consumer advocacy organizations, led by the American Economic Liberties Project, today sent a letter urging the Department of Justice and Department of Transportation to use their authority to block the $1.8 billion Alaska-Hawaiian merger.

“The Alaska-Hawaiian merger would further consolidate the airline industry at the expense of local communities, consumers, and workers,” said William J. McGee, Senior Fellow for Aviation and Travel at the American Economic Liberties Project. “This deal would give the combined entity over 50% market share in Hawaii, intensifying existing concerns about higher airfares and reduced choice, and likely extending that negative impact on flights to the mainland and across the Pacific Rim. History has shown us that mergers like these result in higher prices, fewer routes, and job losses. We categorically reject the notion that further consolidation is the solution to the airline industry’s woes and urge DOJ and DOT to block this harmful merger.”

The letter to the DOJ and DOT, penned by a coalition of seven antitrust and consumer advocacy groups, plainly lays out the harms of Alaska Airlines’ proposed acquisition of Hawaiian Airlines. The $1.9 billion merger threatens to significantly lessen competition in the airline industry, pointing to a history of similar mergers resulting in increased fares and reduced services. In recent decades we’ve seen post-merger fares rise from 15 percent to 60 percent, and we’ve seen flights cut and hub airport operations shut down. Emphasizing the detrimental impact of reduced competition on both national and regional scales in the airline industry, the letter urges the DOJ and DOT to take a stand against this merger in line with the DOJ’s duties to enforce our antitrust laws and the DOT’s authority to protect the public interest in transportation.

The full list of signers to the letter include Accountable.US, American Economic Liberties Project, Demand Progress Education Fund, Institute for Local Self-Reliance, National Consumers League, Open Markets Institute, and Revolving Door Project.

Read the full letter here.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.