Alaska Air Group completed its acquisition of Virgin America today, celebrating the rise of the nation’s No. 5 air carrier with a co-branded jet painted in blue, purple and red.
“Alaska Airlines and Virgin America are different airlines, but we believe different works – and we’re confident fliers will agree,” Brad Tilden, CEO of Alaska Air Group, said in a news release.
The acquisition follows through on months of work to seal the $2.6 billion deal ($4 billion, including debt and aircraft operating leases). The U.S. Department of Justice gave its regulatory approval last week after tweaking the terms to comply with antitrust requirements.
The combined airlines vaulted Alaska Air Group from No. 6 to No. 5 on the list of U.S. carriers – past JetBlue, which had courted Virgin America as well. Alaska and Virgin America are projected to generate more than $7 billion in annual revenue and operate about 280 aircraft.
For the time being, the all-Boeing Alaska Airlines fleet and the all-Airbus Virgin America fleet will retain their separate brands. Except for one plane.
To mark the acquisition, Alaska had one of its 737-900ER jets painted in a blend of Virgin America’s and Alaska Airlines’ livery (including the Eskimo face on the tail). The jet’s interior lighting scheme glowed in red and blue as well.
Alaska Airlines / Virgin America merger jet. One of a kind paint job. "Roll in" this morning at Sea-Tac. #differentworks pic.twitter.com/VoJRMHipEs
— Glenn Farley (@GlennFarleyK5) December 14, 2016
Alaska employees boarding special flight to SFO where they will meet-up with fellow Virgin America workers in a few hours. Festive. pic.twitter.com/Tbn5FEqzHA
— Cale Ramaker (@CaleRamaker) December 14, 2016
Alaska & Virgin diving in head first on embracing the differences between the two airlines. pic.twitter.com/oBOUUom4Yx
— Jon Ostrower (@jonostrower) December 14, 2016
That's how you welcome an aircraft. CEO Brad Tilden greeting the flight. #differentworks #SFO pic.twitter.com/5yeZDAqu44
— Alaska Airlines (@AlaskaAir) December 14, 2016
The co-branded 737 went on a celebratory flight this morning, starting out from Alaska Airlines’ home base in Seattle and ending up in San Francisco, Virgin America’s stomping grounds. Alaska expects Virgin America’s hip, Silicon Valley-centric clientele to provide a lift for its West Coast service. The deal also gives Alaska better access to high-demand airports in the New York City region as well as Washington, D.C.
In conjunction with closing the deal, Alaska said it would offer new flights from its San Francisco hub to Minneapolis; Orlando, Fla.; and Orange County, Calif., beginning next summer. Schedule and availability are to be announced on Dec. 21.
Alaska Air Group said it would give away 1,200 round-trip tickets in honor of the combined airlines’ nearly 1,200 daily flights. For more information on the contest, check out Twogether.DifferentWorks.com. Starting Monday, the members of each airline’s’frequent-flier plans will be able to earn miles on the other airline’s flights. It’ll also become possible to purchase Virgin America tickets on Alaska Air’s website as well as the Virgin America website.
Virgin America frequent fliers will be invited to activate new Alaska Airlines Mileage Plan accounts next month.
“We plan to make this the most customer-friendly merger ever, and we will have much more to announce over the coming weeks,” Tilden said.
Alaska said no decision has yet been made about the long-term future of the Virgin America brand, which has been licensed from the British-based Virgin Group. “This is a big decision, and one that deserves months of thoughtful and thorough analysis,” Tilden said. “We plan to make a decision about the Virgin America brand early next year.”
Ben Minicucci, Alaska’s president and chief operating officer, also took on the title of Virgin America CEO today. “We are being very thoughtful about culture and are working to create an environment that reflects who we are and where we’ve been, that also enables us to work together, be bold, and succeed in a rapidly evolving industry,” Minicucci said.
Alaska Airlines and Virgin America said they’ll spend the next year working to secure certification from the Federal Aviation Administration to operate officially as a single carrier. Horizon Air, a regional subsidiary of Alaska Air, will continue to operate under a separate FAA certificate.
