News

Alaska Airlines gets U.S. approval to buy Virgin America

Alaska Airlines gets U.S. approval to buy Virgin America
Business
An Alaska Airlines Boeing 737-800 painted with the airline s new tail logo and livery takes off, Tuesday, Jan. 26, 2016, at Seattle-Tacoma International Airport in Seattle. (AP / Ted S. Warren)

Published Tuesday, December 6, 2016 4:39PM EST

WASHINGTON -- Alaska Airlines has won government approval to buy rival Virgin America after agreeing to reduce its flight-selling partnership with American Airlines.

Parent company Alaska Air Group Inc. said Tuesday that it expects to close the $2.6 billion deal soon.

The Justice Department filed a lawsuit and settlement agreement in federal district court in Washington. Seattle-based Alaska agreed to scale back a deal in which it and American sell seats on some of each other s flights and split the revenue.

Alaska is the nation s sixth-biggest airline, and California-based Virgin is eighth. Together, they will become the fifth-biggest.

The airlines still face a private lawsuit to block the deal. Alaska and Virgin executives have expressed confidence they can resolve that lawsuit, which is pending in federal district court in San Francisco.
Read more on CTVnews
News Topics :
Similar Articles :
Business
An Alaska Airlines Boeing 737 800 painted with the airline s new tail logo and livery takes off, Tuesday, Jan. 26, 2016, at Seattle Tacoma International Airport in Seattle. AP / Ted...
Business
Alaska Airlines will pay $57 in cash per Virgin America share. That’s a 47 per cent premium to its Friday closing price of $38.90. Virgin’s shares rose more than 39...
Business
Alaska Air Group Inc said on Monday it had agreed to buy Virgin America Inc for $2.6 billion U.S. to expand its flights on the U.S. West Coast. Alaska Air said...
Business
Alaska Air Group Inc. is close to buying Virgin America Inc., the carrier backed by billionaire Richard Branson, in a deal that may be agreed to as early as Saturday...
Top Stories
A woman on an overnight Virgin America flight from Los Angeles to Newark, N.J. over the weekend says she woke up to find the stranger in the next seat over...