Last week, Alaska Airlines finalized its $2.6 billion acquisition of Virgin America, following approval from the Department of Justice. Including Virgin America’s debt and aircraft operating leases, the transaction’s total estimated value is about $4 billion.
Alaska Airlines said it will continue to operate the Virgin America fleet under its current name and product for the near term while conducting extensive customer research to identify which elements flyers value most. The carrier plans to spend the coming year securing FAA certification so the two airlines can operate as a single carrier; no final decision has been announced about whether a combined brand will be retained.
The merger creates the fifth-largest U.S. airline, with a combined schedule of 1,187 daily flights to 118 destinations and a fleet of 286 aircraft.
For customers, ticketing and loyalty integration are already being coordinated. Tickets for former Virgin America flights will be available online at alaskaair.com and will continue to be sold at virginamerica.com for the time being. Alaska Mileage Plan members can earn miles on Virgin America flights and Virgin America flyers can earn on Alaska flights. Elite-status members from both programs will receive reciprocal priority check-in and boarding privileges. Starting Jan. 9, 2017, frequent-flyer members will be able to redeem miles across the Alaska Airlines and Virgin America route networks.
Alaska also announced new seasonal routes out of San Francisco (SFO) that will begin next summer: daily service to Orlando (MCO); twice-daily service to Minneapolis–Saint Paul (MSP); and four daily round trips between San Francisco and Orange County (SNA). These additions expand options for travelers and reflect the combined carrier’s broader route planning following the acquisition.
Operational and customer-facing changes will be phased in as Alaska completes regulatory steps and integrates systems and loyalty programs. The airline has emphasized its intent to preserve key aspects of the Virgin America product while aligning safety, operational, and customer-service standards across the combined network.