Virgin America's merger with Alaska

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

Dear Lawren,

I wanted to write to let you know that we announced today that Virgin America has agreed to be acquired by Alaska Airlines. With complementary West Coast-based networks and similar cultures focused on guest service and operational efficiency, the joining of the two carriers will not only create a stronger and more competitive airline, it will create a leading guest experience for travelers like you – while also significantly expanding your flying options across a larger network of destinations in North America and across Alaska Airlines' robust international partner network.

Nearly nine years ago, we set out to build an airline from the ground up with the guest in mind, an airline that reinvented the flying experience, and that actually made air travel fun again. Thanks to loyal flyers like you, I believe we delivered on that brand promise. You've helped us sweep the travel awards every year since our launch, grow to four million Elevate members, and in the past few years achieve strong financial results. Even so, our industry has become increasingly consolidated with each passing year. In fact, today just four airlines control more than 80 percent of the U.S. market. By joining forces with Alaska Airlines – an airline that is also known for its leading operational performance and guest-focus – we are creating the best airline in North America and one with the size and market share necessary to compete in this consolidated environment.

The transaction, which we expect to take several months to close, is subject to approval by regulators, Virgin America shareholders and other conditions. In the meantime, Virgin America and Alaska Airlines will continue to operate as two independent companies. Our current Elevate frequent flyer program will remain in effect until that time. We will be providing you with updates as we move closer to completing the transaction, but please know that both companies are committed to ensuring that this merger will have no impact on your flying experience. After transaction close, both airlines will work to integrate the Virgin America Elevate program into the Alaska Airlines Mileage Plan program with no disruption to your earning or redemptions.

We will be sharing additional details in the months to come, but in the meantime you can find more information about your Virgin America benefits, Alaska Airlines Mileage Plan program, and the combined carriers' larger network on www.virginamerica.com and at Alaska Airlines' transaction website: www.flyingbettertogether.com.

As the only airline headquartered in California, Virgin America has always been intent on shaking up the status quo in the airline industry. Our goal has been to do no less than reinvent the flying experience for the better – with innovative amenities and milestones like being the first airline to offer fleetwide WiFi and power outlets. We believe that by teaming up with Alaska Airlines – an airline also known for its stellar on-time performance, customer loyalty and guest-friendly brand – we will not only continue our mission to make flying enjoyable again, but we will do so on a much broader scale.

Thank you for flying with us – and we look forward to seeing you on even more flights in the future.

Sincerely,

David Cush
President and CEO of Virgin America

[easyrider Senior Member Find all posts View Profile Close easyrider]

I think Im going to like this merger if it goes through because I use Alaska Airlines for most of our flights. What would be cool is being able to book award travel to other destinations through Alaska.

[stan2u Member Find all posts View Profile Close stan2u]

I think Im going to like this merger if it goes through because I use Alaska Airlines for most of our flights. What would be cool is being able to book award travel to other destinations through Alaska.

I was thinking the exact same thing.

[DavidnJudy Junior Member Find all posts View Profile Close DavidnJudy]

I am hoping they get more of an east coast precense

[StressCadet Senior Member Find all posts View Profile Close StressCadet]

I'm west coast, so this excites me very much. I'm already a fan of both Alaska and VA AND my FF accounts will merge. Fantastic. Between, Alaska, VA and Hawaiian, I'm all set for Hawaii for many trips. It's all good in my world!

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

I am hoping they get more of an east coast precense

The deal does two key things for Alaska.

First, it fills in the north-south holes that they have in their west coast network. After the merger they will have routes between all of the major west coast airports. The combined airline will be the largest carrier on the Pacific Coast, and Alaska will have a much stronger presence in California, where there are more opportunities for growth than in the other western states.

Second, it gets them more gates and landing slots at eastern US airports. Alaska will now be flying passengers from California airports to east coast destinations.

For me, located in the Pacific NW, this is looks very good.

Also there should be little trouble with the regulators on the merger, since a combined Alaska-Virgin America is a much more viable competitor against the four large airlines that collectively control 80% of the market.

Second, it opens r