By Brian Murphy
Alaska Air Group Inc. said Monday it plans to buy Virgin America in a deal worth about $4 billion that marks another significant consolidation in the U.S. airline industry.
Alaska Air is currently the sixth-largest U.S. carrier by traffic and serves 90 destinations in the United States, Canada and Mexico. Acquiring Virgin America would give a greater reach, including links with Dallas Love Field and more transcontinental service, a statement said.
It also represents another name lost within the U.S. airline ranks, which has lost several major carriers over the past decade.
Under the deal, Alaska Air will pay $57 in cash per Virgin share. Virgin closed Friday at $38.90. The companies described the entire value of the package at about $4 billion, including debt and aircraft leases.
Virgin America began service in 2007 with backing from minority owner Richard Branson, the founder of the global Virgin brand. The deal still needs approval from the Alaska Air board and Virgin America shareholders, but the airline has already made it clear it was open for acquisition.
In the last major U.S. airline merger, American and US Airways joined in late 2013.
Alaska Air and Virgin American said they hope to close the transaction no later than Jan. 2. The combined company will be based in