Alaska Air nearing settlement with US on Virgin deal: Source

Alaska Air Group is close to reaching a settlement with US antitrust officials that will allow it to complete its proposed $2.6b acquisition of Virgin America, according to a person familiar with the matter. Virgin America's shares rose as much as 5.9% to a record high of $58.70, before giving up some gains to be up 2% in afternoon trading on Friday. Alaska Air's shares were little changed at $79.33. "Alaska believes that (the) Department of Justice review will likely be completed by the end of November," a spokeswoman for the airline said. Discussions with the Justice Department, which has been considering the impact of the merger on competition and airfares, have included the possibility of Alaska jettisoning part of one or more code-sharing agreements it has with larger US carriers, sources told Reuters last month. Alaska Air agreed in April to buy California-based Virgin America to expand in Los Angeles and San Francisco and offer more connections to international airline partners.<br/>