Alaska Airlines & Virgin America’s deal: Still delayed. We’re fatigued (Image: Alaska Airlines)
Here we are in December, and there’s still no final word on the long-awaited, much anticipated acquistion of Virgin America by Alaska Airlines. The deadline for the deal keeps getting pushed back…and today, we’ve learned of yet another delay. And another deadline…
Sources close to the dealmaking told TravelSkills a final decision by the Department of Justice (DOJ) is now expected by the “end of the year.” The takeover was initially announced last April with a goal of closing in the fourth quarter of this year. As the fourth quarter approached, a deadline of September 30 was set for the Department of Justice to give its okay to the deal… or seek to block it.
Then a new deadline of October 17 was set for the the DOJ decision. That date passed, and on October 20, Alaska Air CEO Brad Tilden said in an earnings call that, “there is a process at play” and “we’re not quite there yet.” Then the deal was hit by an antitrust lawsuit in San Francisco.
In early November, an image of a purported Virgin America – Alaska Airlines 737 with a new livery made the rounds, which has us all thinking a deal was imminent. But no. Then in mid-November, Virgin America lawyers said in a filing Northern District Court of California that “Alaska believes that Department of Justice review will likely be completed by the end of November.”
That blue tail could be the look of the future for Alaska Airlines (Photo: Brandon Farris)
So here we are in December and there’s still no DOJ decision. Virgin America and Alaska are still operating as two separate entities. Employees and members of both airline frequent flyer programs are waiting and wondering about the future. Fatigue about the whole affair is setting in…
What’s next? Well, insiders have told us this is how it will go down: The DOJ should complete its review by the end of December and issue a press release on the decision. Alaska Airlines will then respond to that decision (likely with a press release of its own). Once all parties are in agreement over the terms of the take over, the next step is for Alaska Air to take care of that pesky antitrust lawsuit in San Francisco opposing the merger. And then, after all that, we’ll see the deal go down.
So there you have it. Another deadline for a DOJ decision is now set for December 31. Will it happen? Who knows. But it’s a bit strange that a DOJ decision keeps getting pushed back, despite Alaska Airlines’ claims that progress is being made.
What do you think? Is this a done deal, or is it in jeopardy? Please leave your comments below.
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