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Alaska Air buys Virgin America for $2.6 billion

Alaska Air buys Virgin America for $2.6 billion

Old Apr 4, 2016, 9:39 am
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Alaska Air buys Virgin America for $2.6 billion

http://money.cnn.com/2016/04/04/inve...eal/index.html

This is GREAT news for those of us who have been held hostage by WN when they took over the intra-California market during the last fuel price boom in 2008. Once the deal closes, frequent flyer programs are merged, my only reason to fly WN will be the occasional leisure trip to LAS. The sooner the better.

For the WN Koolaid drinker, competition from a low cost, full service carrier should be a good thing.
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Old Apr 4, 2016, 10:02 am
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Originally Posted by diver858
http://money.cnn.com/2016/04/04/inve...eal/index.html

This is GREAT news for those of us who have been held hostage by WN when they took over the intra-California market during the last fuel price boom in 2008. Once the deal closes, frequent flyer programs are merged, my only reason to fly WN will be the occasional leisure trip to LAS. The sooner the better.

For the WN Koolaid drinker, competition from a low cost, full service carrier should be a good thing.
Any possible credibility your post may have had was instantly negated by the unnecessary Koolaid comment. Nice job.
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Old Apr 4, 2016, 11:33 am
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I though JetBlue was sure to get Virgin, and a better fit, but Alaska has a stronger balance sheet.

I wonder what their plans are.
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Old Apr 4, 2016, 12:33 pm
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WN headquarters must be doing backflips over the potential to pick up the 2 remaining gates at DAL.

As somebody who lives next-door to DAL and uses VX to the coasts and WN for all other routes, this news really bums me out. WN only runs one DAL-SFO direct route each day (720pm CST departure, 610am PST return) which is a regular trip for me. Post-Wright, I ditched AA for a WN/VX lifestyle but I fear many return trips to DFW are in my future.
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Old Apr 4, 2016, 12:36 pm
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As a DAL flyer I like this deal. This should increase competition with more destinations out of DAL, even if by connecting service.
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Old Apr 4, 2016, 12:54 pm
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Will Alaska move out of DFW or give up the gates at LUV?

Perhaps these could go to Delta?
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Old Apr 4, 2016, 1:38 pm
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Originally Posted by diver858
This is GREAT news for those of us who have been held hostage by WN when they took over the intra-California market during the last fuel price boom in 2008.
How so? Virgin is hardly a viable blip on the Intra-CA market outside of SFO-LAX.
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Old Apr 4, 2016, 2:36 pm
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Originally Posted by smmrfld
Any possible credibility your post may have had was instantly negated by the unnecessary Koolaid comment. Nice job.
Yep. Anyone who has different preferences, desires, thoughts, comfort levels, priorities, opinions, financial obligations, etc, is a "Koolaid drinker."

Typical Flyertalk.
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Old Apr 4, 2016, 2:50 pm
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VX has provided most of the low fare leadership intra-CA during the last 4 years. Southwest's customers will pay higher fares from now on.

On the other hand, VX has offered few great fare deals over the past year or so. Maybe the change I fear has already happened. I know that my average fare paid has never been higher, low fuel prices notwithstanding.
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Old Apr 4, 2016, 2:52 pm
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Originally Posted by mctrees02
WN headquarters must be doing backflips over the potential to pick up the 2 remaining gates at DAL.

As somebody who lives next-door to DAL and uses VX to the coasts and WN for all other routes, this news really bums me out. WN only runs one DAL-SFO direct route each day (720pm CST departure, 610am PST return) which is a regular trip for me. Post-Wright, I ditched AA for a WN/VX lifestyle but I fear many return trips to DFW are in my future.
Kelly should not pop the cork on the champagne just yet. There is speculation in both the AA and AS FT forums that AS will move its DFW service to DAL - particularly if it retains its close relationship with AA. This will put competitive pressure on both DL and WN, the former picked a fight with AS by establishing a hub in SEA, AS retaliated by doing the same in SLC.
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Old Apr 4, 2016, 2:55 pm
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2.6 billion seems like they overpaid by a billion, doesn't it?
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Old Apr 4, 2016, 2:55 pm
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Originally Posted by PAX62
How so? Virgin is hardly a viable blip on the Intra-CA market outside of SFO-LAX.
I was referring to the COMBINED entity; AS has been ramping up intra-California service, creating focus cities in SAN, SJC and SNA, adding VX to the mix should result in increased SFO service.
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Old Apr 4, 2016, 2:56 pm
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Originally Posted by Jaimito Cartero
2.6 billion seems like they overpaid by a billion, doesn't it?
Yes - considered a defensive move by some in the AA and AS forums, keep VX away from B6.
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Old Apr 4, 2016, 3:19 pm
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Originally Posted by toomanybooks
Yep. Anyone who has different preferences, desires, thoughts, comfort levels, priorities, opinions, financial obligations, etc, is a "Koolaid drinker."

Typical Flyertalk.
Come on now - you are going to miss me when I am gone (from this forum, A-list status).

Having earned elite status on AA, AS and WN, I cannot understand how a frequent flyer would choose to fly WN, agree with your premise IF the choice was between say AA, DL and UA - or F9 and NK. Gary Kelly is attempting to carve out his own category, current incarnation makes little sense for frequent business travelers, requires constant marketing, reinforcement, its own reservation system to discourage comparison shopping.

The current AS management team knows what they are doing, will give Kelly a run for his money, will be interesting to see if he (as CEO) survives it. The good news is that the intra-California market has been ripe for competition for some time, Kelly should have expected it when he jacked up fares and reduced frequency, customers of both carriers will win in the short term.

My WN flights have been out of necessity - no other options. As AS/VX offer more intra-California service, I expect lots of other current WN hostages to join me in pre-reserved seats, free first class upgrades. With that said - I should be careful, don't want too much competition for those upgrades...
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Old Apr 4, 2016, 4:08 pm
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Originally Posted by Jaimito Cartero
2.6 billion seems like they overpaid by a billion, doesn't it?
That was my though as well, especially considering how some people (not necessarily here) suggested that WN overpaid for FL and that was just $1.4B.
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