Actionable news
All posts from Actionable news
Actionable news in ALK: ALASKA AIR GROUP Inc,

Virgin America-Alaska Air Deal Accretive To Earnings By 20%

Trade with confidence. Are you a professional trader? Be the first to get the alert with Benzinga Pro's real-time newsfeed and audio squawk and never miss an opportunity again.
Don't miss the chance to try it FREE today.

It's been an emotionally tumultuous week for billionaire, minority owner and founder of Virgin America Inc VA 0.18% Richard Branson, as he has watched his beloved airliner engage in merger talks beyond his control.

"I would be lying if I didn't admit sadness that our wonderful airline is merging with another," Branson shared in a blog post. "Because I'm not American, the US Department of Transportation stipulated I take some of my shares in Virgin America as non-voting shares, reducing my influence over any takeover. So there was sadly nothing I could do to stop it."

"In 2007, when the airline started service, 60 per cent of the industry was consolidated. Today, the four mega airlines control more than 80 per cent of the US market. Consolidation is a trend that sadly cannot be stop."

The Merger

It was announced Monday that speculations were correct in surmising Alaska Air Group, Inc. ALK 2.7% has won the acquisition auction for Virgin America.

According to the New York Times, "In agreeing to buy Virgin America for $2.6 billion, Alaska Air...