ALASKA AIRLINES’ $2.6B VIRGIN AMERICA BUY CONDITIONALLY APPROVED BY DOJ
January 9, 2017
On December 6, 2016, the U.S. Department of Justice (DOJ) approved Alaska Airlines’ proposed $2.6 billion purchase of Virgin America, contingent on a significant reduction in the scope of Alaska Airlines’ codeshare agreement with American Airlines. Under a proposed settlement with the DOJ, Alaska Airlines will be prohibited from codesharing on routes where Virgin America and American Airlines already compete and on routes where Alaska Airlines would otherwise be likely to compete with American Airlines post-merger. The settlement would also require Alaska Airlines to obtain regulatory approval before selling or leasing any gates or slots that were divested to Virgin America as part of the American Airlines-US Airways merger. The Alaska-Virgin settlement must still be approved by a D.C. federal judge.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com; 202-659-6622) or Drew Derco (dderco@eckertseamans.com; 202-659-6665).
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