Alaska Airlines officially announced that it will acquire rival Virgin America in a deal worth approximately $ 2.6 billion. In a joint statement, the carrier said that Alaska Airlines has agreed to share and even absorb the debt of Virgin America, as well of leased aircraft, total the cash transaction is valued close to $ 4 billion.
"The combination expands the operations of Alaska Airlines in California, strengthens its platform for growth and strengthen the company as a competitor to the four largest US airlines," said the carrier based in Washington, said in a statement. "We will combine the major established markets in the Pacific Northwest and state of Alaska, already served by Alaska Airlines, with a solid base of Virgin America, California, this way the new airline will have greater participation in airports as Golden State, including San Francisco, California and Los Angeles Int'l. "
With this union the two companies will have about 280 aircraft, making the total 1200 flights with hubs in Seattle Tacoma Int'l, San Francisco (CA), Los Angeles and Portland Int'l. Once completed, the Virgin America loyalty program will be merged with Alaska Airlines.
In terms of leadership, the organization will be combined with headquarters in Seattle, under the leadership of President of Alaska and CEO, Brad Tilden. His leadership team composed of Tilden and David Cush of Virgin, will co-lead a transition team, which will develop a specific integration plan, to receive regulatory approval to put into practice.
Although it has been unanimously approved by the boards of directors of both companies, the merger is subject to receipt of regulatory approval, shareholder approval and satisfaction of other customary conditions in the financial Virgin America. As such, the sale should be completed regulatory approval on 1 January, 2017.