Alaska
Latest News Impacts Merger Prospects For Hawaiian/Alaska Airlines
In an airline industry continuing to navigate the turbulent skies of consolidation and mergers, among other even bigger issues, the proposed union between Alaska Airlines and Hawaiian Airlines presents a complex situation that is drawing considerable attention from regulators and industry observers alike. While recent reports from some source want to suggest that the the merger is almost certain, a deeper dive into the circumstances surrounding this potential tie-up reveals a less straightforward path. That in spite of the news this week.
Regulatory scrutiny and historical precedents
The federal government has adopted a strong stance on antitrust enforcement, particularly in the airline sector. This was recently exemplified by the Justice Department’s actions against other airline mergers and partnerships, such as the lawsuit to dissolve the partnership between American and JetBlue, as well as successful efforts that blocked JetBlue’s acquisition of Spirit. Even as many have pointed out significant differences between the proposed Alaska/Hawaiian tie-up and these, this is no slam-dunk. These federal interventions depict a commitment to preventing consolidations perceived as anti-consumer and stifling competition.
The Alaska Airlines/Hawaiian Airlines journey began with their joint announcement at a press conference on December 3, which Beat of Hawaii attended. That set the stage for extensive regulatory review at the hands of the U.S. Department of Justice (DOJ), which commenced its in-depth investigation in February. That scrutiny involves a thorough examination of documents, data and other factors in order to assess the merger’s implications on Hawaii airline market competition.
Compliance and cooperation between Alaska, Hawaiian and regulators.
In an important development this week, the two airlines recently confirmed compliance with a second detailed request for information from the DOJ. That milestone was crucial and has been successfully met according to Alaska and Hawaiian. You’ll recall that the airlines previously agreed to not attempt to finalize their merger until at least 90 days following this event, in cooperation with the ongoing regulatory processes .
Financial and operational plans.
If the merger is allowed to proceed, Alaska Air is set to become the parent company and will be based in Seattle, while both airlines plan on continuing to operate under their existing brands. This arrangement may suggest an important merger success strategy, as we’d indicated, in maintaining each brand and its operations individually. But will that be enough to mitigate government concerns about concentrating the Hawaii airline market?
Analysis and outlook on Hawaiian merger prospects.
Contrary to some more optimistic reports, it appears that the reality reflects that the proposed merger still faces a series of hurdles and uncertainties. The severe regulatory landscape, reflected in the administration’s proactive antitrust stance, suggests that the path to a merger could still be fraught with challenges and delays, both anticipated and not.
As industry observers, we are maintaining a cautious but optimistic outlook on the merger’s prospects. Indeed the timely cooperation between Alaska Airlines, Hawaiian Airlines, and the DOJ is a good sign. Final approval and completion of the merger, however, still hinges on complex regulatory decisions, including how the DOT views the market conditions, and possible strategic concessions that may still be required to address any antitrust concerns. We will know no later than August 5 what the DOJ has in mind for this merger.
Do you have any thoughts on the upcoming Alaska/Hawaiian merger?
Alaska
Winter Solstice celebration takes over Cuddy Park
ANCHORAGE, Alaska (KTUU) – On the darkest weekend of the year, Alaskans gathered at Cuddy Park to mark the moments before daylight finally begins its slow return.
To celebrate, the Municipality held its annual winter solstice festival, inviting everyone for an evening of cold-weather fun.
”Some of the highlights, of course, are ice skating at the oval right over there, some holiday music, we have Santa and Mrs. Claus wandering around, we are going to have some reindeer here,” Anchorage Parks and Recs Community Engagement Coordinator, Ellen Devine, said.
In addition to seeing reindeer, folks could take a ride around the park in a horse-drawn carriage or sit down and watch a classic holiday film provided by the Alaska Bookmobile.
Despite the frigid temperature, people made their way down to the park to partake in some festive cheer.
“It is my first time in Anchorage,” attendee Stefan Grigoras said. “It’s beautiful, it is a little bit cold, I’m not going to lie, but I want to take a picture with the reindeer.”
Grigoras, like many, took part in the free hot chocolate and took his photo with St. Nick and Mrs. Claus, who were seen wandering around bringing joy to all.
“[The kids] get so excited and, you know, you have everything from run over and almost knock us down with hugs to not even wanting to come near us, and it’s just a fun combination of all that,” Mrs. Claus said.
Some of those kids were Logan and Keegan, who were out and about with their parents, Samantha and Trevor. The two kids asked for things that every child is sure to want.
“A monster truck,” Logan said.
“Bingo,” Keegan said.
”Like Bluey and Bingo,” Samantha clarified for Keegan.
The young family is originally from Arkansas and is excited to be a part of a thriving community.
“I love Anchorage’s community. There’s so many community events, and especially as a young family, it makes me really excited to get together and get to know people,” Samantha said.
As the festivities continued into the night, a familiar holiday message could be heard.
”Merry Christmas, ho, ho, ho,” the Clauses yelled!
“Merry Christmas,” Logan and Keegan said.
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Alaska
Opinion: You get what you pay for — and Alaska is paying too little
Most Alaskans, perhaps even most Americans, have a knee-jerk reaction to taxes. They affect citizens in a sensitive area — their pocketbook. Perhaps a little analysis and thought could change this normal negative reaction.
It is clear, even to the stingiest among us, that Anchorage and Alaska need more income. Our severely underfunded public schools, decreasing population — called “outmigration” these days — underfunded police force, deteriorating streets and highways, underfunded city and state park budgets, and on and on, are not going to fix themselves. We have to pay for it.
Public schools are the best example. Do you want your first grader in a classroom with 25-plus students or your intermediate composition student in a class with 35-plus students? What if the teacher needs four to five paragraphs per week per student from two such classes? Who suffers? The teacher and 70 students. It’s not rocket science — if you minimize taxes, you minimize services.
I was an English teacher in Anchorage and had students coming into my classroom at lunch for help. Why? They were ambitious. Far more students who wanted and needed help were too shy, too busy or less motivated. With smaller class sizes, those students would have gotten the help in class.
Some Alaskans resent paying taxes that help other people’s children. They often say, “But I don’t have any kids in school!” The same attitude is heard when folks say, “The streets in our neighborhood are fine.” Taxes are not designed to help specific taxpayers; they are, or should be, designed to help the entire community. And we are a community.
As well, lots of people get real excited by sales taxes, especially those who have enough income to buy lots of stuff. They argue that, on balance, sales taxes are unfair — they are regressive. That means that individuals with less income pay a higher percent of their income than individuals with a higher income, and this is true. It is minimized by exempting some expenses — medical care, groceries and the like.
A recent opinion piece published in the Anchorage Daily News explained the disadvantages of a regressive tax. In doing so, the author made an excellent argument for using a different kind of tax.
The solution is to use an income tax. With an income tax, the regulations of the tax can prevent it from being regressive by requiring higher tax rates as individual incomes increase. Alaska is one of only eight or nine states with no state income tax. For those folks all worked up about regressive sales taxes, this is the solution.
Any tax that most folks will accept depends on people seeing themselves as part of the same community. That’s not always obvious these days — but it doesn’t change the bottom line: We still have to pay our way.
Tom Nelson has lived in Anchorage more than 50 years. He is a retired school teacher, cross country ski coach, track coach, commercial fisherman and wilderness guide.
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Alaska
Maintenance delays Alaska Air Cargo operations, Christmas packages – KNOM Radio Mission
Christmas presents may be arriving later than expected for many rural communities in Alaska. That’s after Alaska Air Cargo, Alaska Airlines’ cargo-specific carrier, placed an embargo on freight shipments to and from several hubs across the state. According to Alaska Airlines, the embargo began on Dec. 16 and will end on Dec. 21.
The embargo excludes Alaska Air Cargo’s GoldStreak shipping service, designed for smaller packages and parcels, as well as live animals.
Alaska Airlines spokesperson, Tim Thompson, cited “unexpected freighter maintenance and severe weather impacting operations” as causes for the embargo.
“This embargo enables us to prioritize moving existing freight already at Alaska Air Cargo facilities to these communities,” Thompson said in an email to KNOM. “Restrictions will be lifted once the current backlog has been cleared.”
Other carriers like Northern Air Cargo have rushed to fill the gap with the Christmas holiday just a week away. The Anchorage-based company’s Vice President of Cargo Operations, Gideon Garcia, said he’s noticed an uptick in package volume.
“It’s our peak season and we’re all very busy in the air cargo industry,” Garcia said. “We are serving our customers with daily flights to our scheduled locations across the state and trying to ensure the best possible holiday season for all of our customers.”
An Alaska Air Cargo freighter arrives in Nome, Dec. 18, 2025. It was the daily-scheduled flight’s first arrival in Nome in a week after maintenance issues plagued the Alaska Air Cargo fleet. Ben Townsend photo.
Garcia said the holiday season is a tough time for all cargo carriers, but especially those flying in Alaska.
“We operate in places that many air carriers in other parts of the country just sort of shake their head at in disbelief. But to us, it’s our everyday activity,” Garcia said. “The challenges we face with windstorms, with cold weather, make it operationally challenging.”
Mike Jones is an economist at the University of Alaska Anchorage. He said a recent raft of poor weather across the state only compounded problems for Alaska Air Cargo.
“I think we’ve seen significantly worse weather at this time of year, that is at one of the most poorly timed points in the season,” Jones said.
Jones said Alaska Air Cargo is likely prioritizing goods shipped through the U.S. Postal Service’s Alaska-specific Bypass Mail program during the embargo period. That includes palletized goods destined for grocery store shelves, but not holiday gifts purchased online at vendors like Amazon.
“When a major carrier puts an embargo like this it clearly signals that they’re having an extraordinarily difficult time clearing what is already there, and they’re trying to prioritize moving that before they take on anything new,” Jones said.
According to the U.S. Bureau of Transportation Statistics, Alaska Airlines was responsible for 38% of freight shipped to Nome in December 2024.
Alaska Air Cargo’s daily scheduled flight, AS7011, between Anchorage and Nome has only been flown four times in the month of December, according to flight data from FlightRadar24. An Alaska Air Cargo 737-800 freighter landed in Nome Thursday at 11:53 a.m., its first arrival in one week. Friday’s scheduled flight has been cancelled.
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