ALASKA AIRLINES HAS PURCHASED VIRGIN AMERICAN
Resulting from a hard fought bidding war between Alaska Air and JetBlue, Alaska Air has acquired California based Virgin American for $2.6 billion. With both airlines known for their customer oriented experiences and west coast pride, this is a perfect match.
With this new alliance, Alaska Air is in position to be the biggest carrier on the west coast.
Combined, Alaska Airlines and Virgin America would have 1,200 daily departures, with hubs in Seattle, San Francisco, Los Angeles, Anchorage and Portland, Ore. Its headquarters will remain in Seattle.
Members of Virgin America’s loyalty program will be welcomed in to Alaska’s Mileage Plan.
There are still decisions to be made however. Alaska, who has always flown Boeing jets, is considering their options with Virgin’s Airbus fleet. They could end up operating an expensive dual fleet or seek to liquidate them.
This was a fantastic move for Virgin American shareholders who came out at $57 per share. Analysts have predicted a big payoff for Alaska shareholders as well, but it will take time to recover from this pricey acquisition.
For further reading, please visit www.flyingbettertogether.com where Alaska Air has compiled all of the details about this deal.
Travel News by Executive Travel Consultants, LTD