US antitrust regulators wave ahead Alaska-Virgin America deal

Alaska Air’s $4bn bid for Virgin America has been cleared for takeoff by US antitrust regulators, according to an announcement on Tuesday. The US Department of Justice said that, in a settlement pending court approval, Alaska had agreed to scale back part of its codeshare agreement with American Airlines to address regulators’ antitrust concerns, particularly those where Alaska and Virgin already compete. The transaction has been valued at $4b, US officials said. When completed, the deal will see Alaska, currently the sixth-largest US airline, and Virgin, the ninth largest, combine to become the fifth-largest US carrier. “Today’s settlement ensures that Alaska has the incentive to take the fight to American and use Virgin’s assets to grow its network in ways that benefit competition and consumers,” said Renata Hesse, acting assistant attorney general in the DoJ’s antitrust division, noting that smaller carriers like Alaska and Virgin serve as competitive checks on larger rivals. Alaska CE Brad Tilden said the company “couldn’t be more excited” about getting US regulatory approval. The company said it expects the deal to close “in the very near future,” as it still faces antitrust litigation brought by private plaintiffs in California federal court.<br/>