Alaska Reaches Deal with DOJ to acquire Virgin America

[jimntx]

Alaska gives up no assets--such as gates, routes, but must severely reduce codeshare with American by 50%.

http://atwonline.com/regulation/ala...m=email&elq2=fa906d97ec314330a81bf804dae511c0

 

[swamt]

Still haven't heard any word on keeping the Love Field flights going or not. I thought ALK would prefer to combined all flights at DFW. The problem with LF is no room to grow or expand larger than just the 2 gates Virgin currently has. Nice to see the merger being blessed without giving up gates or routes. Jim, will the code share with AA affect AA in a big way? Just didn't know how many code shares they have now and what they will have to go to.

 

[jimntx]

Here is company's response to the news on Jetnet. Evidently not a big deal. Codesharing to/from each others hubs seem flights most affected.

Changes coming to the American-Alaska codeshare

Yesterday our long-time partner Alaska Airlines announced an agreement with the Dept. of Justice (DOJ) that clears the way for the carrier to close its merger with Virgin America. As part of the agreement, Alaska and American will need to make some reductions to our codeshare routes. This reduced codeshare will primarily impact routes to and from our hubs and those of Alaska and Virgin America, as well as routes where Alaska, Virgin America and American offer overlap service. In all, Alaska will need American to remove its code from less than 20 Alaska routes and Alaska will need to remove its code on about 40 routes flown by American. Customers will not lose access to any destinations, frequent flyer accrual and redemption on Alaska will continue, and employee agreements – like employee interline and ZED travel – will not change. Alaska Airlines remains a valued partner and we expect that relationship to continue for years to come.

BTW, company has specifically designated DCA/IAD as the only co-terminal in the system--i.e., both airports are considered to be one when assigning flights to pilots and flight attendants. So, Love Field may not be affected in any way. If VA is doing well there with the 2 gates, Alaska may not see any reason to move those flights to DFW, and AA might be able to codeshare on those flights.

 

[swamt]

I see. It does appear that VA is doing very well out of LF. Just do not know the numbers related to just LF. I think ALK will do just fine at LF, just didn't know if they would still run 2 airports so close together. Hell they could save a bundle and move all flights to LF.

 

[jimntx]

I don't know how many flights Alaska has to DFW or gates at DFW. There may be more than the 2 gates at LF could accommodate--particularly since Alaska will be losing some/all of the codeshares with AA at DFW. Just about every DFW-SEA flight and (I think) DFW-LAX flight is a codeshare now. They will need to make up that revenue somewhere, and adding flights would be the most likely source.

 

[swamt]

Some are still wondering if #4 and #5 will ever merge. We have already been told by our upper management that ALK is coming after SWA especially in the west routes. To me it would be a good match, but not sure how the gov. would look at it. ALk now will have 286 aircraft and most all of them are 737's and would put SWA at nearly or over 1000 aircraft which GK has mentioned before that we would be at by some time between 2018 and 2020 I believe. Also still wondering what JB might be looking at in the future and not to be left out. This could get interesting in the near future...

 

[jimntx]

Deal closed creating U.S. 5th largest airline.

http://atwonline.com/airlines/alask...m=email&elq2=622575a71c8e4d228e47c0899bb8c39f

Now, with VA flying nothing but Airbus a/c and ALK flying nothing but 737s, the fun begins of getting two sets of flight attendants cross-trained before they can achieve FOI (full operational integration). Fortunately, unlike LAA and LUS, there is only 1 a/c for each set to learn. For us at the "new" American, the configurations are so different that we even have to be trained on same a/c differences.

 

[swamt]

Just read this article on the merger. Very happy to see that there will be growth for the front line employees including Pilots, F/A's, and Mechanics. This is great for our industry as a whole. Congrats to the employees of the new Alaska Airlines. Even greater news for the Virgin employees (mechanics in general) as they will be under the new contract if/or when it is voted in. Big raises coming to the Virgin mechanics once integration is completed. Congrats to you all...

• VA

Alaska Airlines will eliminate 300 Virgin America management jobs, hire for new 'front line' jobs