Reportedly Alaska Air Close to a $2 billion Acquisition Deal for Virgin America
On Saturday, reports said that Alaska Air Group Inc is close to settling a deal to buy Virgin America Inc. Virgin is the ninth biggest airline in the United States by passenger traffic. The deal is expected to be for greater than $2 billion. The bid surpassed the offer from JetBlue Airways Corp.
The acquisition would ushering the first commercial airline merger in the United States after US Airways and American Airlines merged in 2013. It formed the largest carrier in the world.
It would increase Alaska Air’s home market and would permit it to expand into other profitable hubs like Los Angeles and San Francisco.
Sources said Alaska Air will pay price between a range of $56 and $58 a share for buying Virgin America. People familiar with the matter said the deal might be announced as soon as Monday. However, no comments were made by Alaska Air or Virgin America.
Virgin America based in Burlingame, California went public in 2014 in the U.S stock market as a subsidiary of Virgin Group headed by Richard Branson. One of the main reasons of its popularity was its low fare stance with the basic luxuries of comfortable leather seats and great entertainment system in the flights.
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