Virgin America is set to merge with Alaska Airlines after the latter agreed to purchase the former in a US$4 billion deal.
The merger will expand Alaska Airlines’ existing footprint in California, bolstering the company’s position as a competitor to four of the largest US airlines (American, Delta, Southwest and United).
In addition, the transaction will open up growth opportunities in important East Coast business markets by allowing Alaska Airlines to gain increased access to slot-controlled airports such as Ronald Reagan Washington National Airport and the two New York City-area airports – JFK International and La Guardia.
Meanwhile, Virgin America customers stand to benefit from expanded services to technology markets in Silicon Valley and Seattle, while the combined airline will also offer more connection opportunities to international airline partners departing Seattle, San Francisco and Los Angeles.
David Cush, Virgin America's president and chief executive, said, "Our mission has always been to create an airline that people love – and we accomplished that while changing the industry for the better. Joining forces with Alaska Airlines will ensure that our mission lives on, and that the stronger, combined company will continue to be a great place to work and an airline that focuses on an outstanding travel experience."
Together, the merger will result in the combined airline offering 1,200 daily departures from hubs such as Seattle, San Francisco, Los Angeles, Anchorage, Alaska and Portland, Oregon. Total fleet strength is also set to increase to 280 aircraft with an average age of 8.5 years.
For more information, visit flyingbettertogether.com
Clement Huang
