I’m torn. My 3rd favorite airline plans to marry my 2nd favorite airline… they have very different cultures, aircraft fleets, strategies, and different passengers.

Alaska will gain an SFO base, a smaller LAX base, a whole different fleet of planes (increasing maintenance costs), new routes, new employees, and will be required to either change the Virgin culture or adopt it as their own (unlikely).

Alaska is following the model to buy capacity, rather than growing it organically. Ultimately at what cost? Bottom-line, I think 50-60% of the Virgin clients will find a new carrier and JetBlue is trying hard to win them over, which will mean Alaska will have planes with unprofitable routes.

Virgin has been a disrupter in US aviation and they have used marketing and technology to build their customer base. Hands-down, Virgin has been more innovative than Alaska… and I hear Alaska might not keep those assets.

Alaska has a strong position on the West Coast and should have spent their $2.6B building their brand, acquiring new planes and growing their cross-country routes organically.

Virgin you shouldn’t have been so eager to cash in on a great product. I will mourn the day Alaska changes the livery and the Virgin culture is gone.

Latest News:

https://skift.com/2016/10/22/proposed-alaska-airvirgin-america-merger-hits-minor-snag-in-san-francisco-federal-court/