Posted on: 26 September 2016 by Mark Howells
Alaska Air Group, Inc. and Virgin America Inc. have announced that each carrier has agreed with the Antitrust Division of the United States Department of Justice (DOJ) to extend the date of their timing agreement.
They have stated the parties will not consummate the acquisition prior to 17 October 2016, unless the DOJ provides written concurrence to close within a shorter period. The parties previously agreed to not close the merger before 30 September 2016, but the extension gives the DOJ additional time to review the proposed merger.
The two airlines are confident they will obtain regulatory approval to for a merger which they claim will ‘provide consumers more choices and lower fares while allowing for more robust competition against the Big Four airlines, which control 84% of the domestic market.’