8/16/2019 tugas GBC Virgin America Bought by Alaska Airlines

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Virgin America bought by Alaska Airlines,triggering Branson windfall

Seattle-based Alaska to pay $2.bn for Virgin budget airline, which flies to 2! destinations

 Alaska Air said Virgin America would gi"e it a bigger business in #alifornia

by epanding into San %rancisco and &os Angeles. 'hotograph( )a"id

*cnew+euters

Sean Farrell

*onday April 2!!2./0 BS1&ast modified on *onday April

2!!/.! BS1

Sir ichard Branson is epected to make almost 344m after Alaska Airlines agreed to

pay $2.bn 53!.bn6 for Virgin America, the 7S budget airline the British billionaire

launched in 20.

 Alaska Airlines said it agreed to pay $40 a share, or $2.bn, in cash for Virgin America,

which flies to 2! destinations within the 7S and *eico. 8ncluding Virgin America9s

debt and aircraft operating leases, the deal is "alued at $bn.

Shares in Virgin America soared last month after reports that the company was up for 

sale. Branson9s Virgin group owns about /: after floating the business on the stockmarket in 2! with a "alue of slightly more than $!bn. 1he takeo"er by Alaska Airlines

means Branson9s stake has more than doubled in "alue in the past year and a half.

1he airline has attempted to stand out from established competitors in the 7S with an

irre"erent and playful image with purple mood lighting and planes named Virgin ;

1onic and <efferson Airplane. 8t is the the ninth biggest 7S airline by passenger 

numbers with about !.4: of domestic flight capacity compared with 4: for Alaska

 Airlines.

8/16/2019 tugas GBC Virgin America Bought by Alaska Airlines

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 Alaska Airlines planes. 'hotograph( <ason edmond+euters

Virgin America made a pre-ta profit of $!m on sales of $!.bn in 2!, according

to its annual statement released in %ebruary. Seattle-based Alaska Airlines triumphed

o"er <et Blue in a bidding war for Virgin America as smaller airlines seek to bulk up to

compete with bigger ri"als.

 Alaska Airlines said Virgin America would gi"e it a bigger business in #alifornia by

epanding into San %rancisco and &os Angeles and strengthen it to compete against

the big 7S airlines. 1he deal will also gi"e Alaska more slots at airports in the north-

east 7S such as onald eagan =ashington national airport and <ohn % >ennedy and

&a?uardia in @ew ork.

)a"id #ush, Virgin America9s chief eecuti"e, said( Cur mission has always been to

create an airline that people lo"e D and we accomplished that while changing the

industry for the better. <oining forces with Alaska Airlines will ensure that our mission

li"es on, and that the stronger, combined company will continue to be a great place to

work and an airline that focuses on an outstanding tra"el eperience.E

http(++www.theguardian.com+business+2!+apr++"irgin-america-bought-by-alaska-airlines-branson-windfall