Article from BTNews 12 DECEMBER 2016
Virgin US takeover approved
Alaska Air has won approval from the US Department of Justice for its takeover of Virgin America in a $2.6bn cash deal to boost its operation on the US West Coast and offer more competition to larger airlines.
The deal, which Alaska says it hopes to close “in the near future”, is subject to changes to the codeshare agreement with American Airlines, prohibiting Alaska and American from codesharing on routes where Virgin and American compete today.
The ban, said the DoJ, also applies to routes “where Alaska would otherwise be likely to launch new service in competition with American following the merger”, to ensure continued strong competition between the merged carrier and American.
Elsewhere, Alaska Air is continuing its expansion with new flights between Portland and Newark, its first non-stop between Oregon's largest city and the New York City area, and between San Diego and Newark. Services are by the fuel-efficient next-generation Boeing 737.
Flights between Newark and San Jose, California, and a third daily flight between Newark and Seattle begin next spring. Alaska has also just begun a codeshare deal with British Airways (see BTN 21 November).
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