Acquisitions

Alaska Air Completes Virgin America Acquisition

Alaska Air completed its $2.6 billion acquisition of Virgin America to become the fifth-largest U.S. carrier.
Alaska Air Completes Virgin America Acquisition
Image credit: Reuters | Files
1 min read
This story originally appeared on Reuters

Alaska Air Group Inc. said on Wednesday it completed its $2.6 billion acquisition of Virgin America Inc., more than eight months after it was first announced, to become the fifth-largest U.S. carrier.

The four big U.S. airlines by passenger traffic are American Airlines Group Inc., Delta Air Lines Inc., United Airlines Inc. and Southwest Airlines Co.

Alaska Air said it would continue to operate the Virgin America fleet with its current name for a period of time and would conduct customer research to understand what fliers value most.

Last week, the company won U.S. antitrust approval for its acquisition of Virgin America on condition that it would scale back its code-sharing with American Airlines.

Under the settlement with the Justice Department, Alaska Air and American Airlines would be banned from code-sharing on routes where Virgin and American Airlines now compete.

Code-sharing is also barred on routes that Alaska Air might start in the future if American Airlines also flies that route.

Alaska Air said it now has nearly 1,200 daily flights to 118 destinations.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Anil D'Silva and Martina D'Couto)

More from Entrepreneur

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.