FX Excursions

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Alaska Airlines Acquires Virgin America

by KatieS

Dec 20, 2016
News

Last week, Alaska Airlines completed the $2.6 billion acquisition of Virgin America. The purchase came a few days after antitrust regulators at the Department of Justice approved the deal. The deal has a total estimated value of $4 billion, which includes Virgin America’s debt and aircraft-operating leases.

“Alaska plans to continue to operate the Virgin America fleet with its current name and product for a period of time while it conducts extensive customer research to understand what flyers value most,” said Alaska Airlines.

Alaska is planning to spend the next year working to secure FAA certification to allow the airlines to operate as a single carrier. No decision has been made whether the new brand will be retained.

The merger makes the combined company the fifth-largest U.S. airline, offering 1,187 daily flights to 118 destinations with a fleet of 286 aircraft.

For customers, ticket purchases for Virgin America will be available online at alaskaair.com and will also remain available at virginamerica.com. Alaska Mileage Plan members will be able to earn miles on Virgin America flights and vice versa. Elite-status loyalty members of both airlines will receive priority check-in and boarding on each company’s flights. Beginning Jan. 9, 2017, frequent-flyer members will be able to redeem miles across Alaska Airlines and Virgin America networks.

Alaska Airlines announced new flights from San Francisco (SFO) to Orlando (MCO), Minneapolis (MSP) and Orange County (SNA) will begin next summer. The Orlando route will operate daily; the San Francisco route will operate twice per day; and the San Francisco–Orange County flights will operate four times each day.

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