SEATTLE, Dec. 6, 2016 /PRNewswire/ -- The Antitrust
Division of the United States Department of Justice (DOJ) today
completed its review and approved Alaska Air Group's (NYSE: ALK)
acquisition of Virgin America (NASDAQ: VA). Alaska Air Group is the
parent company of Alaska Airlines, Inc. and Horizon Air Industries,
Inc.
"We couldn't be more excited about receiving DOJ clearance for
our merger with Virgin America," said Alaska Air Group Chairman and
CEO Brad Tilden. "With this
combination now cleared for take-off, we're thrilled to bring these
two companies together and start delivering our low fares and great
service to an even larger group of customers."
Alaska was not required to
divest any assets as a condition of DOJ clearance.
Alaska did agree to implement
limited changes to its codeshare agreement with American Airlines.
The majority of Alaska and
American codeshare flights will remain intact. The DOJ did not
require changes to any other agreements between Alaska and American, including interline or
reciprocal loyalty agreements, or any of Alaska's other airline partnerships.
The company plans to close the transaction in the very near
future, taking into account the lawsuit filed by private plaintiffs
in U.S. District Court in San
Francisco. Lawsuits of this kind are not uncommon with
mergers. The company believes the plaintiffs' claims are without
merit and plans to defend its acquisition of Virgin America
accordingly.
"We remain confident in the merits of this transaction," Tilden
said. "The expanded West Coast presence and larger customer base
create an enhanced platform for growth, which is good for
investors, employees and especially customers – who benefit from
more choices, increased competition and low fares."
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.
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains forward-looking
information about Alaska Airlines and the proposed transaction with
Virgin America. 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 Alaska Airlines and/or Virgin
America. Alaska Airlines cautions 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; 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 are
described in greater detail in Alaska Air Group's SEC filings,
including its Annual Report on Form 10-K for the fiscal year ended
Dec. 31, 2015, as well as in other
documents filed by Alaska Air Group with the SEC after the date
thereof. Alaska Air Group makes 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 Inc.
