Alaska Air Group closes acquisition of Virgin America, becomes fifth largest US carrier

Alaska Airlines Group announced (14-Dec-2016) it has closed its acquisition of Virgin America, making it the "fifth largest US airline." Highlights of the merger include:

• An expanded route network with nearly 1200 services to 118 destinations across the US, Mexico, Canada, Costa Rica and Cuba;
• More nonstop destinations served from the west coast than any airline;
• A global network of partner airlines that, together with Alaska, fly to more than 800 destinations worldwide;
• Virgin America Elevate members and Alaska Airlines mileage plan members can earn rewards on each other's services effective 19-Dec-2016, with elite members to receive priority check-in and priority boarding;
• Customers can purchase Virgin America tickets at alaskaair.com, effective 19-Dec-2016. Tickets will continue to be available for sale at virginamerica.com for the immediate future;
• Virgin America Elevate members will be invited by Alaska Airlines to activate new mileage plan accounts, beginning 09-Jan-2017;
• A combined fleet of 286 aircraft with an average age of 8.1 years, the "youngest of the top five US airlines";
• Corporate headquarters in Seattle;
• Hubs in Seattle, Portland, Anchorage, San Francisco and Los Angeles.

Alaska Airlines and Virgin America will spend 2017 working to secure Federal Aviation Administration (FAA) certification to allow the two carriers to operate as a single carrier, with regional sister carrier Horizon Air remaining on its own separate operating certificate. The combined company will be led by Alaska Air Group CEO Brad Tilden, with Ben Minicucci to serve as CEO of Virgin America in addition to his role as COO and president of Alaska Airlines. Peter Hunt, previously Virgin America SVP and CFO, will serve as president of the Virgin America subsidiary. Both Mr Minicucci and Mr Hunt's positions are effective 14-Dec-2016, and remain in effect until the carriers obtain a single operating certificate from the FAA, expected in early 2018. [more - original PR - I] [more - original PR - II] [more - original PR - III]

Alaska Air Group: "Alaska Airlines and Virgin America are different airlines, but we believe different works - and we're confident fliers will agree. Together, we'll offer more flights, with low fares, more rewards and more for customers to love, as we continue to offer a distinctive travel experience. The two airlines may look different, but our core customer and employee focus is very much the same. We plan to make this the most customer-friendly merger ever, and we will have much more to announce over the coming weeks", Brad Tilden, CEO. Source: Company statement, 14-Dec-2016.