Alaska Air Group, the parent company of Alaska Airlines, revealed on Monday (April 4, 2016) that it entered an agreement to purchase Virgin America airlines for $2.6 billion in cash.
Alaska Air and JetBlue were previously reported to have submitted bids for Virgin America after the Richard Branson-backed airline announced it was looking to go public and began evaluating offers.
According to The New York Times, the deal “would unite two domestic carriers that are among the 10 largest in the United States, but that operate in a tier below the industry giants.” The merger is expected to be completed by early 2017 following approval by regulators and Virgin America’s shareholders.
More information on the transaction is available via The New York Times.
