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In a surprising move, Alaska and Hawaiian Airlines have announced their plans to merge, creating the 5th largest US airline. This unexpected consolidation comes at a time when the US government is actively opposing airline partnerships and mergers. Alaska Airlines has offered an incredible $18 per share of Hawaiian Airlines stock, a significant markup from the previous closing price.
If the merger is approved, it would be a major victory for the oneworld alliance, which recently welcomed Alaska into its membership. While past airline mergers have resulted in higher fares and decreased competition, they have also made the industry more profitable. The outcome of this merger remains uncertain, but the airlines are hopeful for a favorable decision.
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