Alaska Airlines announced today that they are buying out Virgin America for an aggregate price of $4 billion, and creating the west coast's premier carrier. The buyout will expand Alaska's presence in California, as Virgin America's two hubs are at SFO and LAX. Of course, this buyout will require government approval that is expected by January 2017.
Alaska will decide the future of Virgin America's 60 A319s and A320s (as well as the latter's orders with Airbus), as it could either keep the VRD fleet, or sell it off and order more 737s.
Further information in this Alaska Airlines press release, and this Virgin America press release.
Further information in this Alaska Airlines press release, and this Virgin America press release.
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