Antitrust regulators at the Department of Justice have requested
additional information from Alaska Airlines and Virgin America as the carriers
work toward a merger.
In an announcement Tuesday, the airlines described the request as “a standard part of the DOJ review process.”
“Alaska and Virgin America will be responding promptly. The two
airlines are confident that they will obtain regulatory approval and complete
their pro-competitive and pro-consumer transaction no later than January 1,
2017,” they said in a joint statement.
Alaska announced plans to purchase Virgin America for $2.6 billion last
month. The transaction is valued at approximately $4 billion including Virgin’s
debt and aircraft operating leases.
The airlines are not allowed to close the transaction until 30
days after they have completed the DOJ’s latest information request.
The acquisition is also subject to approval of Virgin’s
shareholders.
The DOJ declined to comment.