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Wed, Oct 19, 2016

Alaska Airlines/Virgin America Merger Proceeding Apace

Closing Expected Early In The 4th Quarter Of This Year

The merger of Alaska Airlines and Virgin America is making "good progress", according to company officials.

Alaska Airlines spokeswoman Bobbie Egan said that the talks with the Department of Justice are proceeding as planned, and that it was anticipated that the deal would close early in the fourth quarter of this year.

Reuters reports that Egan would not offer any details about potential issues with the deal.

Alaska announced a $2.6 billion cash deal for Virgin America in April. If the merger is approved, it will be the largest west coast-based carrier, and the fifth-largest airline in the U.S.

The website dedicated to the merger says that the combined airline would operate under the Alaska Airlines brand, but radio station WFAA reports that Sir Richard Branson said the Virgin America band would continue if it is phased out after the merger. He told the station at an event in Dallas that if that happens, he'll "start again", and the Virgin America brand would live on.

(Image from file)

FMI: www.alaskaair.com

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