Alaska Airlines buys Virgin America for $2.6B

A southbound Alaska Airlines jet takes off from Petersburg’s airport Sept. 13, 2014. Some of the airline’s fares have been reduced and other price cuts may be coming. (Ed Schoenfeld, CoastAlaska News)
A southbound Alaska Airlines jet takes off from Petersburg’s airport Sept. 13, 2014. Some of the airline’s fares have been reduced and other price cuts may be coming. (Ed Schoenfeld, CoastAlaska News)

Alaska Airlines is acquiring West Coast-based airline Virgin America for $2.6 billion dollars – around $57 dollars per share.

According to a press release, including Virgin America’s indebtedness and capitalized aircraft operating leases, the total transaction value is worth around $4 billion.

The acquisition bolsters Alaska Airlines’ California presence.