DOJ Approves Alaska Airlines’ Acquisition of Virgin America

Dec 6, 2016

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Some great news if you’ve been rooting for Alaska Airlines to acquire Virgin America. The two carriers have just received final approval from the US Department of Justice, though Alaska did need to make some concessions. Namely, Alaska will need to discontinue some codeshare flights with American Airlines, though the majority will remain. There will be no changes to interline or reciprocal loyalty benefits at this time (including AA and Delta), and Alaska can continue its relationships with other partners as they currently stand.

As for what’s next? According to the press release:

The company plans to close the transaction in the very near future, taking into account the lawsuit filed by private plaintiffs in U.S. District Court in San Francisco. Lawsuits of this kind are not uncommon with mergers. The company believes the plaintiffs’ claims are without merit and plans to defend its acquisition of Virgin America accordingly.

It’s not yet clear exactly when the deal will close, but pending successful resolution of the aforementioned lawsuit, Virgin America could have a new parent company any day now.

How do you feel about Alaska’s acquisition of Virgin America?

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