Alaska Air poised to buy Virgin America, report says
Originally published April 2, 2016 at 12:03 pm Updated April 2, 2016 at 8:41 pm
By MICHAEL J. de la MERCED and LESLIE PICKER
The New York Times
Alaska Air Group is emerging as the likely winner of an auction for Virgin America, besting a rival bid from JetBlue as negotiations neared a conclusion Saturday.
Virgin America, founded on the premise of being a cool airline shuttling people from New York to California in style, is near a deal to sell itself to a competitor originally created to ferry people 330 miles across Alaska.
Alaska Airlines is poised to buy Virgin for about $2 billion, a person briefed on the matter said Saturday, describing a move that would unite two popular smaller airlines in the latest round of consolidation within the industry.
Should Alaska, which is based in Seattle, reach an agreement to acquire Virgin — details were still being negotiated and could still fall apart — an announcement could come as soon as Monday, said the person, who was not authorized to speak about the matter.
A sale of Virgin would be the latest instance of deal-making in an industry that has shrunk drastically over the past decade, concentrating power in the hands of a few major airlines.
Virgin, Alaska and JetBlue compete in a tier below the giants: American, Delta and United. When Virgin put itself up for sale this year, it drew preliminary interest from a host of potential suitors. But the biggest domestic airlines, constrained by antitrust regulations, soon gave way to smaller competitors eager to expand their networks.
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http://www.seattletimes.com/business/boe...eportedly-nears-deal-for-virgin-america/