Will the Jetblue Ruling Affect Hawaiian Airlines

Photo byApril Kim from Pixabay

JetBlue had planned to purchase Spirit Airlines for $3.8 billion. However, the ruling on January 16, 2024, stopped the purchase from happening. The judge's decision to block the buyout says the JetBlue purchase would reduce competition.

What does it mean for Hawaiian Airlines?

In December 2023, Hawaiian Airlines announced that Alaska Airlines would purchase their airline; the purchase would include Hawaiian Airlines' debt of around $900 million.

Aloha Airlines closed its business on March 31, 2008. Aloha Airlines and Hawaiian Airlines were mainstays in inter-island travel. However, with Aloha Airlines out of business, Hawaiian Airlines and Southwest Airlines are the only two airlines servicing inter-island travel. Mokulele Airlines services Honolulu, Big Island, Maui, Moloka'i, and Lana'i. However, they don't service Kauai. If the block of JetBlue Airlines purchasing Spirit Airlines is any indication, Alaska Airlines's purchase is not a guarantee.

How long can Hawaiian Airlines operate with a $0.9 billion debt? The Aloha Airlines closure took many by surprise. Could this be the same for Hawaiian Airlines if Alaska Airlines' purchase of Hawaiian Airlines falls apart?

We could see Southwest Airlines as the only major airline servicing the Hawaiian islands. That means prices will undoubtedly increase with no other airline competing with Southwest Airlines.

Final Thoughts

I'd rather have Alaska Airlines purchase Hawaiian Airlines and keep the Hawaiian Airlines brand name than have the same fate as Aloha Airlines. If the Alaska Airlines purchase falls apart, we could see only one major airline servicing Hawaii.