Virgin America Sold to Alaska Airlines for $2.6 Billion

BURLINGAME, CA- Alaska and Virgin America airlines announced Monday a sale and merger that will leave the former the fifth largest airline in the United States.

According to a joint announcement released Monday, Alaska Airlines is buying Virgin America for $2.6 billion in cash, and another $57 per share. CNN Money puts the total value of the deal at about $4 billion.

The deal between Alaska and Virgin is expected to close by Jan. 1, 2017.

The new, "premier west coast airline" is expected to generate more than $7 billion annually while shuttling some 39 million passengers, according to airline officials. The company will have more than 280 airplanes and expects to provide more than 1,200 daily departures.

As for the future of the employees at the Burlingame base for Virgin America? It's not yet known if the office will remain, as headquarters for the merged company will be moved to Seattle.

"The combined organization will be based in Seattle under the leadership of Tilden and his senior leadership team, who collectively have nearly 15 decades of combined airline industry experience," Alaska announced Monday. "Until receiving regulatory approval to close, Tilden and Cush will co-lead a transition team, which will develop a specific integration plan."

Virgin America first launched in 2007. 

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