Alaska Airlines, Virgin America announce $2.6 billion merger

SEATTLE, April 4 (UPI) -- Seattle-based Alaska Air Group Inc. on Monday announced it will acquire Virgin America Inc. for $57 per share in a $2.6 billion acquisition, beating a potential offer from JetBlue.

The merger is expected to provide Alaska Airlines with an increased presence on California routes and opportunities on the East Coast, with flights to Washington, D.C., and New York City's two primary airports.

Alaska Air Group said its goal was to extend its network of flights. The merger will leave the company with 1,200 daily departures and 280 aircraft. The deal will require approval from the Justice Department out of concern airline consolidation leads to higher ticket prices.

Virgin America is valued at $1.5 billion, with 60 planes flying to 23 destination in the United States and Mexico. The merger would make Alaska Airlines the fifth largest carrier in the United States. Its two carriers, Alaska Air and Horizon Air, fly to more than 90 cities in the United States, Mexico and Canada.