Alaska Airlines Completes Acquisition of Virgin America

Although it took longer than expected, on December 14, Alaska Airlines announced they had finalized their $2.6 billion acquisition of Virgin America, becoming the fifth-largest domestic airline in the US. Additionally, Alaska Airlines will now offer the most nonstop flights to the most destinations from the West Coast, and will be in a better position to compete at a number of congested East Coast airports.

Last week, the Antitrust Division of the US Department of Justice (DOJ) gave its approval to the merger with only a slight concession by the airline (the DOJ told Alaska Airlines to refrain from collaborating with American Airlines on codeshare agreements since they are Virgin America’s main competitor on approximately 20 US markets). Alaska Airlines settled a private antitrust lawsuit in federal court in San Francisco the following day, removing the final hurdle to completing the purchase.

According to Brad Tilden, CEO of Alaska Airlines, a number of major decisions have not yet been made, including what to do with the Virgin brand or whether to keep Virgin America’s Airbus A320 planes. Beginning on Monday, December 19, Alaska Airlines will let its Mileage Plan members earn miles on Virgin America flights and vice versa, and both carriers’ elite members will receive priority check-in and boarding. Travelers can also begin buying Virgin America tickets on Alaska Airline’s website starting December 19.


 Alaska Airlines Completes Acquisition of Virgin America