SEATTLE and SAN FRANCISCO, Sept.
26, 2016 /PRNewswire/ -- Alaska Air Group, Inc. (NYSE:
ALK), parent company of Alaska Airlines, and Virgin America Inc.
(NASDAQ: VA) today 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, stating the parties
will not consummate the acquisition prior to Oct. 17, unless the DOJ provides written
concurrence to close within a shorter period. The parties
previously agreed to not close the merger before Sept. 30. The extension gives the DOJ additional
time to review the proposed merger.
The two airlines are confident they will address any concerns
and obtain regulatory approval to complete their pro-competition,
pro-consumer transaction. Given the airlines' largely complementary
networks, the relative size of this merger compared to past airline
combinations, and both Virgin America and Alaska's emphasis on customer service, the
airlines are also confident the DOJ will agree this merger will
provide consumers more choices and lower fares while allowing for
more robust competition against the Big Four airlines, which
control 84 percent of the domestic market.
About Alaska Airlines
Alaska Airlines, together with
its regional partners, flies 32 million customers a year to more
than 110 cities with an average of 970 daily flights throughout
the United States, Canada, Costa
Rica, Mexico and soon
Cuba. With Alaska's global airline partners, customers
can earn and redeem miles to more than 800 destinations worldwide.
Onboard, customers are invited to make the most of their flight
with amenities like power outlets at every seat, streaming
entertainment direct to their device, Wi-Fi and an inspired food
and beverage selection featured on most flights. Alaska Airlines
ranked "Highest in Customer Satisfaction Among Traditional Carriers
in North America" in the J.D.
Power North American Airline Satisfaction Study for nine
consecutive years from 2008 to 2016. Alaska Airlines Mileage Plan
also ranked "Highest in Customer Satisfaction with Airline Loyalty
Rewards Programs" in the J.D. Power Airline Loyalty/Rewards Program
Satisfaction Report for the last three consecutive years. Alaska
Airlines is a subsidiary of Alaska Air Group (NYSE: ALK). Learn
more on the airline's newsroom, blog, alaskaair.com, @AlaskaAir,
facebook.com/alaskaairlines and
linkedin.com/company/alaska-airlines.
About Virgin America
Known for its mood-lit cabins,
three beautifully designed classes of service and innovative
fleetwide amenities — like touch-screen personal entertainment,
WiFi and power outlets at every seat, Virgin America has earned a
host of awards since launching in 2007 — including being named the
"Best U.S. Airline" in Condé Nast Traveler's Readers' Choice Awards
years and "Best Domestic Airline" in Travel + Leisure's World's
Best Awards for the past eight consecutive years. For information,
visit www.virginamerica.com.
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains forward-looking
information about Alaska Airlines, Virgin America and the proposed
transaction. Forward-looking statements are statements that are not
historical facts. These statements can be identified by the use of
forward-looking terminology such as "believe," "expect," "may,"
"likely," "should," "project," "could," "plan," "goal,"
"potential," "pro forma," "seek," "estimate," "intend" or
"anticipate" or the negative thereof, and may include discussions
of strategy, financial projections, guidance and estimates
(including their underlying assumptions), statements regarding
plans, objectives, expectations or consequences of announced
transactions and statements about the future performance,
operations, products and services of Virgin America and/or Alaska
Airlines. Alaska Airlines and Virgin America caution readers not to
place undue reliance on these statements. These forward-looking
statements are subject to a variety of risks and uncertainties.
Consequently, actual results and experience may differ materially
from those contained in any forward-looking statements. Such risks
and uncertainties include: the possibility that the closing
conditions to the proposed transaction may not be satisfied or
waived, including that a governmental entity may prohibit, delay or
refuse to grant a necessary regulatory approval; delay in closing
the transaction or the possibility of non-consummation of the
transaction; the occurrence of any event that could give rise to
termination of the merger agreement; the risk that stockholder
litigation in connection with the contemplated transaction may
affect the timing or occurrence of the contemplated transaction or
result in significant costs of defense, indemnification and
liability; risks inherent in the achievement of anticipated
synergies and the timing thereof; risks related to the disruption
of the transaction to Virgin America and its management; the effect
of announcement of the transaction on Virgin America's ability to
retain and hire key personnel and maintain relationships with
suppliers and other third parties; labor costs and relations,
general economic conditions, increases in operating costs including
fuel, inability to meet cost reduction goals, an aircraft accident,
and changes in laws and regulations. These risks and others
relating to Alaska Airlines and Virgin America are described in
greater detail in their respective SEC filings, including
(i) as to Alaska Airlines, Alaska Airlines' Annual Report on
Form 10-K for the fiscal year ended Dec. 31, 2015, as well as
in other documents filed by Alaska Airlines with the SEC after the
date thereof, and (ii) as to Virgin America, Virgin America's
Annual Report on Form 10-K for the fiscal year ended Dec. 31,
2015, as well as in other documents filed by Virgin America with
the SEC after the date thereof. Alaska Airlines and Virgin America
make no commitment to revise or update any forward-looking
statements in order to reflect events or circumstances occurring or
existing after the date any forward-looking statement is made.
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SOURCE Alaska Air Group
