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Wed, Nov 23, 2016

Approval Expected Soon For Alaska/Virgin America Deal

Department Of Justice Review Should Be Completed By Month's End

An antitrust review of the proposed acquisition of Virgin America by Alaska Airlines should be completed fairly soon, according Alaska Airlines.

Reuters reports that a spokeswoman for Alaska Airlines said in a statement that the carrier's executives expect that the "Department of Justice review will likely be completed by the end of November."

Alaska has proposed a $2.6 billion acquisition of Virgin America. The DoJ is looking into the possible impacts of the merger on competition. Part of the deal may be a requirement that Alaska cancel one or more code-sharing agreements it has with larger domestic carriers.

If it is approved, the merger would make Alaska Air the largest carrier on the U.S. West Coast, according to the report, and make it more competitive with larger airlines.

The Justice Department has not commented on pace of the negotiations.

(Image from file)

FMI: www.justice.gov

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