Airlines
Alaska Air Group To Buy Virgin America
Combination to expand Alaska Airlines’ footprint in California and U.S. East Coast
An Alaska Airlines Boeing 737-900 taxis at Los Angeles International Airport. (Photo: Flickr: Creative Commons (BY-SA) by InSapphoWeTrust)
An Alaska Airlines Boeing 737-900 taxis at Los Angeles International Airport. (Photo: Flickr: Creative Commons (BY-SA) by InSapphoWeTrust)

Alaska Air Group confirmed Monday that its board of directors has approved its acquisition of Virgin America in a deal valued at some $2.6 billion in cash and another $1.4  billion worth of Virgin America indebtedness and capitalized aircraft leases. According to Alaska, the merger allows Alaska Airlines to expand its West Coast presence, better positioning it to provide more customer choice, increase competition and deliver investor returns. The sides expect the deal to close by January 1 and to merge their respective operating certificates in the first quarter of 2018.