I see. My point was that AS is essentially running 2 separate airlines (intra-AK and lower 48 with the West Coast focus; can claim as far a third one for connecting the lower 48 to AK via SEA/PDX). And AS is doing well on the intra-AK part, because they are the only "large" commercial airline, as compared to PenAir and other small operators (and Era belongs to AS as well?). I don't think DL will even think about touching intra-AK.

If VX is in the mix, then they will have 3 or 4 (or more) types of clientele that they will need to satisfy, and that's going to be awfully difficult.

+1. For those who don't know Alaska, they have a very loyal following, which is why AS has had a hard time gaining traction in Seattle. Their employees are happy, and their customer service is good, and their mileage program is one of the (if not now) the best. Their agents are authorized, and will, fix issues, even at the cost of busting policy.

In the State of Alaska they e.g. give free baggage, realizing that they serve more like a bus service where there are no road links, and as such need to have different policies.

+1. UA was the main airline at SEA, but chased out of there slowly, but surely by AS, finally getting killed off by Jeff and Co in 2012.

I hope you mean SEA :).

As promised, here's my tentative opinion of the merger:
https://goo.gl/photos/DMF4MxpMBukc7pGr6

I reserve the right to revise this opinion on the basis of how things proceed (or don't) but from what I can tell, AS does not have award offerings on VA/VS. I've got a metric ton of points and I'll be keeping the card for straight VX purchases (none of which involve a physical transaction), so...the card is now out of use outside of that unless and until I know where things are going.

Edit: Well, I put a link in but it doesn't seem to be loading. Ugh.

A Boston talk radio show is saying that Sir Richard is saying that this is hostile. Anything corroborative out there? Where is this coming from?

It's not hostile. VX advertised its availability. The board approved the sale. For Branson, personally, it seems like he wouldn't have made the same choice, but it's not up to him. As others have pointed out previously, he's said the following:

"I would be lying if I didn't admit sadness that our wonderful airline is merging with another. Because I'm not American, the US Department of Transportation stipulated I take some of my shares in Virgin America as non-voting shares, reducing my influence over any takeover. So there was sadly nothing I could do to stop it."

Anyone who prefers VX are expressly those who dislikes the Legacy carriers. AS is a Legacy carrier.

While I'll keep an open mind (have flown AS before), I really don't see how they're better than the other legacies, unless one already has Elite status.

As to transcon F, any reason to chose AS over AA's, DL's, or UA PS? In SFO, it's not as if AS is ever more cost effective.

His own management and fellow shareholders apparently acted contrary to his wishes -- but he holds a minority position so was overruled. That's not a "hostile takeover," that's a minority shareholder getting voted down.

Perhaps what Branson is most unhappy about is that he will no longer receive the 0.7% fee for the use of his 'Virgin' brand.
A Fortune magazine piece I was just reading online noted that if Alaska had agreed to keep the his brand it would have netted him $49M annually. IIRC.

That's... not really how it works, I think. There is not any vast difference in product flying up to Alaska.

Right now AS's Alaska-based business is somewhere under 20% of their business. It's important but it's like MacBooks for Apple, smaller than the iPhone.

Barely (in that they had authority to fly a few interstate routes before 1979, unlike WN). They were unquestionably helped to expand by deregulation, very much like WN.

They're most certainly an LCC like VX, B6 and WN in how they structure things like ticketing (no Saturday night stay silliness, round trips are 2 times the price of one-ways).

Also, their seat pitch in Y? Identical to VX/WN. Better than legacies with extra legroom products.

(1) I think AS, in some form, gets subsidies within Alaska for some of their routes. There's an odd EAS pot that's basically Alaska-specific and the state probably kicks in some amount as well. IIRC this has gone a long way towards keeping AS independent/out of bankruptcy court since it's a significant portion of the company that's basically guaranteed to not lose money.

(2) As I said before, I think the anti-foreign carrier restrictions are inane. Then again there's a lot that the federal government does that's inane. That being said, it's really a shame that Branson wasn't able to, for example, solicit sales of substantial blocks of stock in Silicon Valley after the company went public.

(3) The real frustrating point is that VX has a good F product. Delta (potentially NYC/WAS/BOS-LAX/SFO aside) has a product that is a piece of .... (DL is, IMHO, good for exactly one thing: Earning status on VS). I cannot speak to Untied or American except that I believe all three of the main legacies are more or less alike. I want a good product though I'm willing to pay a decent amount for it rather than playing endless f-around games hoping for a free upgrade.
(3b) Adjunct to the above: Take what I'd pay for a cross-country sleeper reservation on Amtrak. Knock a little off the top end (I'm not getting 2-3 days worth of meals). That's about what I'm willing to consider paying (probably about $1400) for a cross-country lie-flat seat (bear in mind that on my first VX flight I paid about $1100 DCA-SFO). Will I try to pay less? Of course...but as I said elsewhere in another fight, that's because if I can save money while getting the same product then of course I'm going to try and do so. But I'm willing to pay quite a bit for a good product...cost is a concern but it's not my sole concern.
(3c) Also adjunct to the above: I could join the Mile High Club (think about that that involves) with respect to anybody's baseline Y product today. Ok, if it's back at the standards that were available in the 50s (when you often had a comfortable one-class option available), but on the basis of what is available now...frankly, there is a reason that I haven't flown from Virginia to Florida since I was 14 (I go down there quite often...I basically wind up with status on Amtrak on the basis of Richmond-Orlando trips alone) and it's not because the airline options have me thrilled.

(4) Finally...I have to wonder what the reaction would be if Branson openly said "Yeah, if I was working for VX I'd be updating my resume and if I was a regular flier I'd be looking for an alternative" or something else to openly sandbag the process. To be fair he's come pretty close with his radio comments.

Edit: So, if ballcaps are given out promoting this, would they be AShats? (Sorry, could not resist the pun)

A merger between AL & VX makes absolutely no sense whatsoever. However, one can make cases both for and against the proposed AS/VX merger.

Made me laugh, however, the idea of Virgin America having any interest in an Egyptian charter airline with a fleet of only three birds. Or if not Air Leisure did you mean one of the former AL's - e.g. Allegheny Airlines or TransAVIAexport Airlines?

Codes matter.

Look, I have only had good experiences with VX and enjoyed my flights. But the reality is that it took them 7 years to finally turn a profit, and even then, it was only fueled (pardon the pun) by the steep drop in oil prices. VX mainly flies routes with considerable existing competition and tries to compete on the basis of its cool and unique product. But, the reality is that outside of a few key markets (e.g. BOS/JFK-LAX/SFO), consumers just aren't willing to pay much of a premium for that product. So really, the path for VX going forward as an independent carrier was shaky at best. Costs were likely to increase with fleet age and employee seniority. Meanwhile, the major airlines that were struggling 8 years ago are now making bucketloads of money and providing much more formidable competition.

Given the throes that are very likely ahead for the two airlines, unless there is enlightenment that far exceeds all previous mergers/sales, and given the Richard we know, we might expect him to be quite the gadfly as this goes forward. E.g., at every turn, "Can't blame me!"* ... In addition to saying how they might have done it better. Regardless of what he's signed to keep him quiet.

* In which he'll be correct.

I submit that this package becomes very delectable to DL in completing their southeast-northwest strategy. They tried at PDX. They're nosing around SEA. AS is rich in both, and now becomes richer up and down the coast. Plus, in their mind, "Who needs the competition?" Plus UA has shown its stomach when tested. It folded its hand in SEA, and WN ate its lunch in DEN, two places near and dear to its heritage, where you'd think it would stand and defend. Plus AA has declared for LAX. Handwriting on the wall?

ETA: Think HP+US=>US=>US+AA=>AA.

(Hat tip to Indelaware.)