April 6, 2016
Alaska Airlines Agrees to Buy Virgin America
Alaska Airlines announced Monday is has agreed to buy Virgin America for $2.6 billion. The deal will increase Alaska’s footprint in the West Coast (California) market where it already has a strong foothold in Alaska, Washington and Oregon.
There is no timetable yet on the integration of the two airlines as it still needs approval from the U.S. Department of Justice. Challenges facing Alaska Airlines will be integrating the two labor unions, and also integrating the different aircraft fleet. Alaska flies Boeing 737s and Virgin uses Airbuses.
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