Alaska Air Group Inc. today announced it has closed its acquisition of Virgin America .
The definitive merger agreement, which was signed in April and approved by Virgin America shareholders in July, brings together two of the country’s favorite airlines into a unified force that will provide an attractive alternative to the “Big 4” airlines that currently control 84 percent of the domestic market. Alaska Airlines and Virgin America will spend the next year working to secure Federal Aviation Administration (FAA) certification to allow the two airlines to operate as a single carrier (with regional sister carrier Horizon Air remaining on its own separate operating certificate).
“Alaska Airlines and Virgin America are different airlines, but we believe different works – and we’re confident fliers will agree,” said Brad Tilden, CEO of Alaska Air Group. “Together, we’ll offer more flights, with low fares, more rewards and more for customers to love, as we continue to offer a distinctive travel experience. The two airlines may look different, but our core customer and employee focus is very much the same.”
Today, Alaska Air Group boasts nearly 1,200 daily flights to 118 destinations, the most seats on flights from the West Coast and more than $7 billion annual revenues. Alaska Air Group will continue to provide customers the low fares, unmatched reliability and award-winning service they’ve come to enjoy, while offering a convenient schedule of flights to even more of the places they want to fly. Soon Virgin America customers will have access to a route network that offers six times more daily flights than before.
“This partnership is positive for California air travel consumers and demonstrates an investment in our state,” said Gavin Newsom, Lieutenant Governor of California. “Both airlines boast a strong history, and we look forward to seeing their innovative spirit magnified with their global international network of partner airlines.”
The combination expands service and provides more frequent connections to international airline partners in thriving technology markets in the Bay Area, Los Angeles and Seattle. Together, the airlines offer 289 daily flights to 52 destinations from California, including 113 daily nonstop flights to 32 destinations from three Bay Area airports and 105 daily nonstop flights to 37 destinations from four Los Angeles area airports.
In addition, the combination opens up growth opportunities in important East Coast business markets by increasing Alaska Air Group’s access to high-demand airports like Ronald Reagan Washington National Airport and the three primary New York City-area airports: John F. Kennedy International Airport, LaGuardia Airport and Newark Liberty International Airport.
The company also announced new flights from its San Francisco hub to Orlando (daily), Minneapolis (twice daily) and Orange County, California (four times daily) beginning in the summer of 2017. Schedule and availability will be announced Dec. 21.
Source:- Virgin
