Will There Ever Be Another Airline Merger?

14.05.2024 - 19:43 / travelpulse.com / Spirit Airlines / Hawaiian Airlines / Peter Ingram / Rich Thomaselli

When airlines merged in the past, executives at both companies used to talk about the synergies that were there and how that was an advantage in collaborating..

Apparently that isn’t so true anymore.

Now it appears that carriers have to be as different and disparate as possible to receive Department of Justice regulatory approval. At least, that’s what I took from the comments made by Hawaiian Airlines CEO Peter Ingram, who talked about the potential merger with Alaska Airlines and how different the companies were, and how they did not have overlapping routes. So he expects DOJ approval.

The differences between the two airlines might work to their advantage.

And it doesn’t hurt that they said publicly they will each maintain their brand names and operate independently.

Perhaps that is what doomed, in part, the potential merger between JetBlue Airways and Spirit Airlines, which was blocked by a federal judge and opposed by the Department of Justice.

So will there ever be another airline merger? Sure. Never say never. And the sun, the moon, and the stars will have to align, at least under this administration, which has exhibited a reluctance against big business. But the possible merger of Hawaiian and Alaska Airlines suggests that the consumer will not be affected as much.

Frankly, just the nature of the two airlines will seemingly be an advantage. Let’s face it, you’re not going to fly from Juneau to Anchorage on Hawaiian Airlines, and you’re not going to fly from Maui to Hilo on Alaska. There is little to no competition between the two carriers that would drive airfares up.

That said, it is doubtful that one of the big four airlines will need to merge and expand. Their plays at the head of the line is secure. It wouldn’t be surprising to see two smaller airlines try to get together. Like, perhaps Spirit will revisit its potential collaboration with Frontier Airlines.

But no matter which two airlines decide to get together, they will have to meet the stringent, but undefined requirements set out by the regulating agencies. Unwritten rules, so to speak.

So it appears that any future merger among airlines would be best served by being as different as possible. Or those involved with the airline business will keep those involved in jurisprudents in good standing for a long time.

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