NEW YORK (AP) - Alaska Air Group Inc. is buying Virgin America in a deal worth $2.6 billion, making Alaska the biggest carrier on the West Coast and reigniting the debate over airline consolidation.
The proposed merger also would give Seattle-based Alaska a foothold in key airports in New York and Washington D.C., increasing the airline's appeal to business travelers.
In Virgin's hometown of San Francisco, Alaska currently only flies to Seattle. Following the merger, it also would fly from San Francisco to several key markets including New York, Los Angeles, Las Vegas, Chicago, Boston, San Diego, Denver and Washington, D.C.
The merger pushes Alaska ahead of JetBlue Airways to become the fifth largest carrier in the U.S.