ALASKA AIRLINES ACQUIRES VIRGIN AMERICA

Alaska Air Group, the parent company of Alaska Airlines, announced its intentions to acquire Virgin America for $2.6 billion. This acquisition includes Virgin’s debt and aircraft operating leases, a total value of $4 billion. Post-merger, Alaska and Virgin would hold the maximum seat share on the West Coast at 22%; Southwest follows at 21%, then United at 16%, Delta at 12%, and American at 12%. As Virgin leases the majority of its Airbus fleet, a decision to transition the fleet into a single fleet would be made in 2020. Virgin America Elevate members will join the Alaska Airlines Mileage Plan once the deal is closed.