Virgin America sale speculation: Hainan, jetBlue and others. Timing could be critical for new owners

During nearly eight years of the airline's existence Virgin America's ownership structure has atracted as much attention as its product positioning and positive customer sentiment. In late Mar-2016 reports surfaced indicating that the airline had received interest regarding a potential takeover, which led the airline to reach out to potential buyers.

That development led to a flurry of speculation about a prospective acquirer, with theories ranging from a US rival to foreign airlines or non-airline private equity firms. Any entity that has an interest in Virgin America must carefully examine the risk-reward scenario of purchasing an airline whose position in the US market remains small; it is not the dominant airline at its top four bases measured by seats - San Francisco, Los Angeles, Las Vegas and New York JFK.

The most logical element of a possible sell-off of all or part of Virgin America is that its long-time investors are finally ready to cash out now that the company has some level of sustained profitability. Conceptually while other airlines constitute logical suitors for Virgin America, other aspects of the US and global airline business need consideration while the future of Virgin America is unfolding.