Alaska
Alaska-Hawaiian merger tests Biden administration’s resolve to preserve competition
Another proposed airline buyout has renewed debate over whether there has been too much consolidation in the industry, and whether it is hurting consumers.
The Biden administration has taken a tough stance against mergers, and it is certain to take a close look at Alaska Air Group’s proposed $1.9 billion acquisition of Hawaiian Airlines.
The deal is smaller than the mergers that reshaped the airline industry more than a decade ago. But the Justice Department is already fighting another smallish deal — JetBlue’s proposal to buy Spirit Airlines.
Alaska Airlines parent Alaska Air Group announced Sunday that it will pay $18 per share for Hawaiian — a huge premium over Hawaiian’s closing stock price on Friday. Hawaiian has struggled to recover from the pandemic and new competition from Southwest on intra-islands flights. It has lost $159 million so far this year.
Alaska says Hawaiian will continue to operate as a stand-alone brand, an unusual step.
Here’s some information about each airline’s customer base, the way antitrust regulators will view the deal, and the impact of past mergers.
ALASKA AND HAWAIIAN CUSTOMERS
Alaska Air Group, based in Seattle, is the fifth biggest U.S. airline company by 2022 revenue, slightly ahead of JetBlue, but is not widely known beyond the West Coast. Its biggest operation is in Seattle, and it bulked up in California in 2016 by buying Virgin America for $2.6 billion after a bidding war with JetBlue.
Hawaiian Airlines — only a quarter the size of Alaska Air by revenue — operates flights throughout the island chain and to the U.S. mainland and also relies heavily on traffic between Asia and Hawaii.
WHAT ARE THEIR REPUTATIONS?
Alaska and Hawaiian are rather traditional airlines. Their fares are typically in line with larger carriers and higher than those charged by discount airlines. In September, both charged slightly lower than average fares for economy-class seats between Hawaii and the mainland, according to figures from aviation-data firm Cirium.
Helped by good weather, Hawaiian often tops the industry for on-time flights, and Alaska usually ranks near the top too. Both score in the middle for consumer complaint rates, according to U.S. Department of Transportation data.
WILL REGULATORS EXAMINE THIS DEAL?
This deal will provide another test for the Biden administration’s resolve to preserve competition in various industries.
The Justice Department succeeded earlier this year in killing a partnership between JetBlue and American Airlines, and the trial over the government’s lawsuit to stop JetBlue from buying Spirit Airlines is scheduled to wrap up this week.
PRO AND CON ARGUMENTS
In the JetBlue case, the Justice Department sued because it wants to preserve Spirit, the nation’s biggest discount airline. If regulators sue to block the Alaska-Hawaiian deal, they are likely to make a different argument — that it would put too much traffic between Hawaii and the U.S. mainland in the hands of one company.
Between them, Hawaiian and Alaska control about 40% of that market, according to Cirium.
Alaska CEO Ben Minicucci said buying Hawaiian will help it compete against the four biggest U.S. airlines. That is exactly the same argument JetBlue made to defend its purchase of Spirit — and that didn’t stop the Justice Department from suing.
Henry Harteveldt, a travel analyst for Atmosphere Research Group, said the fact that Alaska is not buying a low-fare airline like Spirit could improve the chances that regulators will let the purchase of Hawaiian go through.
PREVIOUS AIRLINE MERGERS
The federal government raised few objections to a slew of mergers that consolidated power in the industry. American Airlines, Delta Air Lines, United Airlines and Southwest Airlines control about 80% of the domestic air-travel market, and all of them grew significantly through mergers between 2008 and 2013.
Under President Joe Biden, the Justice Department seems to be showing some buyer’s remorse that previous administrations didn’t block some of those mergers.
IMPACT ON TRAVELERS
Airfares rose faster than inflation for a time after the initial wave of consolidation, but that trend has cooled. The average fare today for a flight within the United States is 35% lower than in 2000 when adjusted for inflation, according to the Transportation Department. However, fees have grown sharply and partly offset lower fares.
The industry trade group, Airlines for America — both Alaska and Hawaiian are members, as are the largest U.S. carriers — insists that competition is robust.
Alaska
Alaska Airlines faces heat after UFC champion Khabib Nurmagomedov gets removed from flight: 'Shame on you'
Alaska Airlines is getting called out on social media after a clip surfaced showing a famous UFC fighter get into a dispute on-board until he was escorted off his flight. The video shows Russian hall of fame athlete Khabib Nurmgomedov debating airline staff in the U.S. while he was sitting in the exit row on the plane.
The video of the incident, which reportedly took place at Harry Reid International Airport in Las Vegas on Saturday, shows an employee telling the 36-year-old mixed martial artist he either has to switch seats or get off the plane. “They’re not comfortable with you sitting in the exit row,” the worker added.
“It’s not fair,” said Nurmgomedov, who was reportedly flying to Los Angeles, to which the worker replied, “It is fair. Yes, it is.”
Nurmgomedov explained that when he was checking in for the flight, he was asked he if knew English, to which he said he did. The airline worker responded, “I understand that, but it’s also off of their judgement. I’m not going to do this back-and-forth. I will call a supervisor.”
The employee reiterated the athlete could either take a different seat on the plane, or staff could “go ahead and escort” him off the flight. She asked “which one are we doing?” and then replied to Nurmgomedov saying they were going to have to rebook him on a different flight.
Across social media, people have been calling out Alaska Airlines asking why they had him removed from the plane. Many called for others to boycott the airline, and some claimed the staff were profiling Nurmgomedov, who is Muslim.
“Why did you remove Khabib from your plane? His fans need to know! I hope he sues you,” an Instagram user wrote on the airline’s most recent post.
“Are you aware of who Khabib is? His legacy surpasses that of the entire airline,” another chimed in.
“Shame on you, Alaska Airline. We all boycotting them,” a TikTok user added.
“What is the reason!? Because they don’t feel comfortable he’s sitting by a window?” another questioned.
Neither Nurmgomedov or Alaska Airlines have yet commented on the situation.
Alaska
Experts recommend preparing in case of Southcentral power outages as storm approaches
ANCHORAGE, Alaska (KTUU) – With a storm approaching and high winds in the forecast for a portion of Southcentral Alaska, experts recommend preparing for potential power outages and taking safety precautions.
Experts with the State of Alaska, Division of Homeland Security and Emergency Management recommended taking the initiative early in case of power outages due to strong weather.
Julie Hasquet with Chugach Electric in Anchorage said Saturday the utility company has 24/7 operators in case of outages.
“We watch the weather forecast, and absolutely, if there are power outages, we will send crews out into the field to respond,” Hasquet said.
She echoed others, saying it’s best to prepare prior to a storm and not need supplies rather than the other way around.
“With the winds that are forecast for tonight and perhaps into Sunday, people should just be ready that it could be some challenging times, and to be aware and cautious and kind of have your radar up,” Hasquet said.
For the latest weather updates and alerts, download the Alaska’s Weather Source app.
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Alaska
The 2025 Alaska Music Summit comes to Anchorage
ANCHORAGE, Alaska (KTUU) – More than 100 music professionals and music makers from Anchorage and across the state signed up to visit ‘The Nave’ in Spenard on Saturday for the annual Alaska Music Summit.
Organized by MusicAlaska and the Alaska Independent Musicians Initiative, the event began at 10 a.m. and invited anyone with interest or involvement in the music industry.
“The musicians did the work, right,” Marian Call, MusicAlaska program director said. “The DJ’s who are getting people out, the music teachers working at home who have tons of students a week for $80 an hour, that is real activity, real economic activity and real cultural activity that makes Alaska what it is.”
Many of the attendees on Saturday were not just musicians but venue owners, audio engineers, promoters and more, hence why organizers prefer to use the term “music makers.”
The theme for the summit was “Level Up Together” a focus on upgrading professionalism within the musicmaking space. Topics included things like studio production, promotion, stagecraft, music education policy.
“We’re kind of invisible if we don’t stand up for ourselves and say, ‘Hey, we’re doing amazing stuff,‘” Call said.
On Sunday, participants in the summit will be holding “office hours” at the Organic Oasis in Spenard. It is a time for music professionals to network, ask questions and share ideas on music and music making.
“You could add us to the list of Alaskan cultural pride,” Call said. “You could add us to your conception of being Alaskan. That being Alaskan means you wear Carhartts, and you have the great earrings by the local artisan, and you know how to do the hand geography and also you listen to Alaskan music proudly.”
The event runs through Sunday and will also be hosted in February in Juneau and Fairbanks.
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Copyright 2025 KTUU. All rights reserved.
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