Virgin America leaves a lasting product legacy as it readies for absorption by Alaska

The pending merger between Alaska Air Group and Virgin America has generated many questions about brand, product, aircraft and network composition. Those are among myriad elements that need evaluation as the two airlines unify to become a more competitive force in a post- consolidated US market place.

One issue that Virgin America believes the merger cannot rectify is enlarging access for smaller airlines at slot- or space-constrained airports in the US. However, with the combined scale, Virgin America believes the two airlines can compete more effectively against the US major airlines that dominate those facilities.

Virgin America is on the cusp of being absorbed by Alaska at a time when its unit revenue performance, albeit negative, remains better than the industry average. Since the merger announcement Virgin America's stock has spiked, which seems to indicate that while some do question the airline's USD2.6 billion price tag, Virgin America's inherent value lies in its ability to be acquired.