Virgin America is reportedly reaching out to potential buyers that are interested in a sale of part or all of the company.
Sources told Bloomberg Business that the airline is working with a financial adviser to discuss the possibility of a sale after receiving takeover interest from a number of prospective buyers.
Several analysts have touted Jet Blue and Delta Air Lines as being possible contenders for the buyout. The former does operate a similar all narrow-body fleet as Virgin, while an acquisition by Delta would allow it to strengthen its presence in the US West Coast.
In particular, a Delta takeover would also ensure that the Skyteam member eliminates a powerful competitor in the transcontinental market, while ensuring a continued presence at Dallas’ Love Field airport, said RW Mann & Co president Bob Mann to Bloomberg.
Despite posting over US$200 million net income in 2015, Virgin America has struggled financially for most of its life, since being founded by Richard Branson in 2007.
Much of Virgin’s network is already well served by the “Big Three” US carriers. It also can’t offer its customers the same frequencies as its bigger competitors. Moreover, as it does not belong to an airline alliance, Virgin customers do not benefit from the same level of connectivity as they would do when flying with American, Delta or United.
For more information, visit virginamerica.com
Clement Huang
