Alaska Airlines is Reportedly Finalizing a Purchase of Virgin America for $2 Billion

This post may contain affiliate links; please read our advertiser disclosure for more information.

Alaska Airlines Purchase Virgin America
Photo by Binder.Donedat

Alaska Airlines Purchase Virgin America

Alaska Airlines is reportedly nearing a deal to purchase Virgin America for about $2 billion according to the Wall Street Journal. JetBlue and Alaska have both bid on the boutique airline, but Alaska seems to be willing to overpay given Virgin’s market valuation of about $1.5 billion.

While the deal is not yet confirmed, the Journal says an announcement could come as soon as Monday. As of now Alaska is the 6th largest airline by traffic and adding Virgin would catapult them past JetBlue and into the number five position.

This purchase would bolster Alaska’s presence in two of the largest West Coast airports, San Francisco and Los Angeles. Following the purchase Alaska would have 15% of the seats offered in San Francisco and 11% in Los Angeles. That is up from their current levels of 4% & 5% respectively.

Alaska Airlines Purchase Virgin America
Photo by Cory Barnes

Since Virgin and Alaska overlap on very few routes, this adds a lot of new city pairs for Alaska, but it also adds a interesting change to their fleet. As of now Alaska Airlines only operates Boeing 737 aircraft and Virgin America operates only Airbus A319 and A320 aircraft. There will definitely be some challenges in integrating this fleet, both considering the manufacturer difference and the on board product as well.

Read More

You can find more information about this breaking news in the Wall Street Journal article. If you don’t have access behind the pay wall then simply search for “Alaska Air Nearing Deal to Acquire Virgin America” on Google and click through from the search engine to get the full article. (Note: This worked for me, but some people are apparently having issues as WSJ tries to shut down this trick.)

What do you think? Is Virgin America a better fit for Alaska or JetBlue? Are you happy with this news or does this week’s letdown by Alaska change your opinion of this deal? Let us know in the comments!

Shawn Coomerhttps://www.milestomemories.com
Since 2007 Shawn Coomer has been circling the globe with his family for pennies on the dollar. He uses that first-hand knowledge and experience to teach others how to achieve their travel dreams for the least amount of money possible.

More Like This

3 COMMENTS

Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

3 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Sponsored

  • MtM recommended tool to track & organize credit cards
  • Best card offers personalized for you
  • Track bonus deadlines, fee dates & 5/24 status
  • Full Travel Freely overview

Free Sign-Up

moomoo - 2 Free Stocks!

Brokerage app moomoo is offering 2 Free Stocks! Just open an account and fund with $500 to get your stocks! Super easy.
Grab your 2 free stocks now!
BoardingArea

Subscribe To Our Newsletter

Join thousands of MtM readers who are subscribed to receive a once daily email with all of our posts. Never miss out!

You have Successfully Subscribed!