Alaska Airlines last month settled a private antitrust lawsuit that had been the final obstacle to its $6.2 billion acquisition of Virgin America. With the settlement in place, the merger can move forward. The parties did not disclose the terms of the agreement.
The settlement came a day after the Antitrust Division of the U.S. Department of Justice gave its approval to the merger, clearing the way for the combined carrier to become the fifth-largest airline in the United States.
The lawsuit was brought in federal court by 42 plaintiffs who sought to block the merger, arguing it could raise fares and reduce the number of available seats for travelers. Plaintiffs described the proposed consolidation as “substantial and foreboding” in its potential impact on consumers.
Alaska Airlines rejected those claims. “We remain confident in the merits of this transaction,” said Brad Tilden, chairman and CEO. The company has argued that an expanded West Coast presence and a larger customer base will create a stronger platform for growth that benefits investors, employees and — importantly — customers through more choices, enhanced competition and low fares.
By settling, the parties avoided a trial and removed the last major legal barrier to closing the deal. Alaska Airlines said it intends to complete the merger as soon as possible and begin integrating operations to realize the expected benefits for travelers and the market.