Hawaiian Airlines and JAL partnership blocked by US authorities
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
The airlines had “not demonstrated how the [joint venture] would function in terms of revenue sharing, pricing and marketing,” despite previous questions raised by regulators, the Department of Transportation said on Friday. As a result, it denied Hawaiian and JAL’s request for immunity for their proposed partnership.
“This decision stifles competition and ultimately hurts consumers by preventing both Hawaiian and JAL from offering more choice and greater access… between Japan and Hawaii, and beyond,” Hawaiian spokesperson Tara Shimooka told TPG. “We will continue to evaluate opportunities to enrich our partnership and deliver greater value to our guests.”
Hawaiian and JAL sought approval for a pact that would have allowed them to coordinate services between Hawaii and Japan, as well as into Asia. Coordination of everything from flights to fares and sales is possible with antitrust immunity from the DOT.
In October, the regulator tentatively ruled that Hawaiian and JAL could achieve the level of cooperation they proposed — including benefits to travelers — without immunity.
In response, the airlines promised to grow capacity by nearly a quarter between Hawaii and Japan, as well as provide additional connections into Asia. Their growth would include new routes between the islands and cities in Japan outside of Tokyo.
The proposed Hawaiian-JAL pact was, in part, in response to changing competitive dynamics between Hawaii and Japan. For example, All Nippon Airways (ANA) debuted Airbus A380s with 520 seats on flights between Tokyo Narita (NRT) and Honolulu (HNL) last June.
Related: Hawaiian, JAL try again to win DOT approval for joint venture
Featured image by Getty Images.
Welcome to The Points Guy!
Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees