Judge Blocks Attempt to Reopen Alaska Airlines Merger Case

A U.S. District Court judge has officially denied an application to re-hear a dismissed lawsuit regarding the USD 1.9 billion merger between Alaska Airlines and Hawaiian Airlines. This decision, delivered by Judge Derrick K. Watson on October 21, 2024, signifies a substantial setback for the plaintiffs attempting to challenge the merger, reported ch-aviation.com.

The motion to set aside the August 12, 2024 judgment was filed by three individuals: Warren Yoshimoto, Sean Kettley, and Kristen Barroga. These plaintiffs had initially argued that the merger would violate the United States’ Clayton Antitrust Act, potentially reducing competition or creating a monopoly in several markets. However, Judge Watson had previously ruled that the plaintiffs failed to demonstrate any “concrete or particularized harm” arising from the merger.

In their recent appeal, Alaska Airlines defended the plaintiffs, labeling them as “serial litigants” who have unsuccessfully challenged nearly every airline merger in recent U.S. history. In his ruling, Judge Watson characterized the plaintiffs’ attempts to reopen the case as a “poorly disguised effort to relitigate standing,” presenting additional evidence that was never submitted during the original court proceedings.

The trio of plaintiffs sought to reopen the case by claiming that the August judgment was based on a “manifest error of law or fact.” However, Judge Watson firmly stated that they could not identify any such errors, indicating that their dissatisfaction with the ruling was not sufficient grounds for reconsideration. “It appears plaintiffs are simply dissatisfied with the court’s decision and wish for a second bite at the apple,” he noted in his ruling.

In light of this decision, Alaska Airlines and Hawaiian Airlines can now proceed with their merger plans without further legal hindrance from this group of plaintiffs. The ruling is seen as a significant victory for both airlines, allowing them to move forward with their strategic goals and operational integrations.

The proposed merger between Alaska Airlines and Hawaiian Airlines aims to create a more robust competitor in the aviation market, enhancing service offerings and operational efficiencies for travelers. Both airlines have expressed confidence in the benefits that the merger will bring to their customers and stakeholders, including improved connectivity and expanded route networks.

The ruling also highlights the challenges faced by individuals and groups seeking to block mergers in the airline industry, especially when prior lawsuits have failed to establish valid claims of harm. The court’s decision reinforces the necessity for plaintiffs to present compelling evidence and valid legal arguments when contesting large-scale mergers in the competitive landscape of U.S. aviation.

In summary, the denial of the motion to reopen the lawsuit represents a significant milestone for the Alaska Airlines and Hawaiian Airlines merger, paving the way for its completion and the realization of strategic synergies. With the legal challenges behind them, both airlines can focus on their integration efforts and enhancing the travel experience for their customers in the coming years.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com