Posted by: News_Desk on 12/06/2016 05:05 PM
Updated by: News_Desk on 12/06/2016 05:05 PM
Expires: 01/01/2021 12:00 AM
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Justice Department Clears Alaska Air Group's Acquisition Of Virgin America
Seattle, WA...The Antitrust Division of the United States Department of Justice (DOJ) today completed its review and approved Alaska Air Group's (NYSE: ALK) acquisition of Virgin America (NASDAQ: VA). Alaska Air Group is the parent company of Alaska Airlines, Inc. and Horizon Air Industries, Inc.
"We couldn't be more excited about receiving DOJ clearance for our merger with Virgin America," said Alaska Air Group Chairman and CEO Brad Tilden. "With this combination now cleared for take-off, we're thrilled to bring these two companies together and start delivering our low fares and great service to an even larger group of customers."
Alaska was not required to divest any assets as a condition of DOJ clearance.
Alaska did agree to implement limited changes to its codeshare agreement with American Airlines. The majority of Alaska and American codeshare flights will remain intact. The DOJ did not require changes to any other agreements between Alaska and American, including interline or reciprocal loyalty agreements, or any of Alaska's other airline partnerships.
The company plans to close the transaction in the very near future, taking into account the lawsuit filed by private plaintiffs in U.S. District Court in San Francisco. Lawsuits of this kind are not uncommon with mergers. The company believes the plaintiffs' claims are without merit and plans to defend its acquisition of Virgin America accordingly.
"We remain confident in the merits of this transaction," Tilden said. "The expanded West Coast presence and larger customer base create an enhanced platform for growth, which is good for investors, employees and especially customers – who benefit from more choices, increased competition and low fares."
Alaska Airlines, together with its regional partners, flies 32 million customers a year to more than 110 cities with an average of 970 daily flights throughout the United States, Canada, Costa Rica, Mexico and soon Cuba. With Alaska's global airline partners, customers can earn and redeem miles to more than 800 destinations worldwide. Onboard, customers are invited to make the most of their flight with amenities like power outlets at every seat, streaming entertainment direct to their device, Wi-Fi and an inspired food and beverage selection featured on most flights. Alaska Airlines ranked "Highest in Customer Satisfaction Among Traditional Carriers in North America" in the J.D. Power North American Airline Satisfaction Study for nine consecutive years from 2008 to 2016. Alaska Airlines Mileage Plan also ranked "Highest in Customer Satisfaction with Airline Loyalty Rewards Programs" in the J.D. Power Airline Loyalty/Rewards Program Satisfaction Report for the last three consecutive years. Alaska Airlines is a subsidiary of Alaska Air Group (NYSE: ALK). Learn more on the airline's newsroom, blog, alaskaair.com, @AlaskaAir, facebook.com/alaskaairlines and linkedin.com/company/alaska-airlines.
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