FlyerTalk Forums - View Single Post - Alaska Nears Deal to Acquire Hawaiian Airlines (DOJ Decision by 8/20/2024)
Old Aug 19, 2024 | 3:13 pm
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Originally Posted by ashill
Really? You don't think it occurred to AS management that they'd have some required divestitures as part of the merger? I highly, highly doubt that they didn't factor in some divestures to their risk analysis in making the merger agreement. Of course it would have been a guess, but presumably a much better guess than any online speculation even now.

Yeah: in other words, DL's expansion at SEA came largely at the expense of AA and WN, not AS, along with new growth in SEA capacity.
Management would be negligent if it was not discussed, but at $18 a share for HA AS management would have calculated that DL was providing sufficient competition at SEA that no divestitures at SEA would be needed. Given the financial condition of HA, the certain requirement to maintain service on cash-burning intra-island flights, and the challenges of merging both airlines that was not an offer that assumed many additional concessions.
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