Alaska Airlines agrees to buy Virgin America, creating 5th-biggest U.S. airline


On Monday, Alaska Airlines said it had struck an agreement to buy smaller rival Virgin America for $57 a share, or about $2.6 billion, a premium of 47 percent over Virgin America's closing price on Friday. Alaska had been in a competitive bidding war with JetBlue, "a fierce back and forth between the two sides, with multiple bids for a number of days," one unidentified person told The Wall Street Journal, adding that JetBlue "put the pencil down" when the price got too high.
The combined Alaska-Virgin America would be the No. 5 U.S. carrier by traffic, supplanting JetBlue. The deal is expected to face some regulatory scrutiny. Alaska, an 84-year-old airline based in Seattle, is in good financial health and, like Virgin America, consistently wins awards for customer satisfaction. Virgin America began flying in 2007, went public in November 2014, and is jointly owned by Richard Branson's Virgin Group Ltd. and Cyrus Capital Partners LP.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Sail in style onboard the brand-new Explora II
The Week Recommends Hit the high seas on a luxury cruise from Barcelona to Rome
-
Is the EU funding Russia more than Ukraine?
The Explainer EU remains largest importer of Russian fossil fuels despite sanctions aimed at crippling Kremlin's war effort
-
Posh crisps: an 'elite' tier of snacking
The Week Recommends Hand-cooked and dusted in 'decadent' flavours, the humble potato chip is being elevated to new levels
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect