Alaska Air To Purchase Virgin America From Virgin Group

The North American aviation industry is set for further consolidation with the announcement that Alaska Air, the parent company of Alaskan Airlines, is to purchase rival Virgin America.


Estimated to be worth around USD 4 billion (including existing Virgin America debt and capitalized aircraft operating leases) and subject to regulatory approval, the deal will create the fifth largest airline in the USA and allow Alaska Airlines to expand its presence in California.


It remains unclear at this point if both brands will remain as separate entities, although Alaska Airlines has revealed the merged company will continue to be headquartered in Seattle and that Virgin America’s Elevate loyalty programme will be absorbed into Alaska Airlines’ Mileage Plan.


When completed, the combined carriers will become one of the largest players in the American west coast, with hubs in Seattle, San Francisco, Los Angeles, Portland and Anchorage offering more than 1,200 daily departures and frequent connections to international airline partners.


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