Alaska Air Group and Virgin America have told the Department of
Justice that they won’t consummate their deal until at least Oct. 17 in order
to give antitrust regulators more time to review the proposed merger.
The move pushes back the potential closing date from
Sept. 30.
“The two airlines are confident they will address any concerns and
obtain regulatory approval to complete their pro-competition, pro-consumer
transaction,” Virgin and Alaska said in a joint statement on Monday. They went on
to say that the merger would allow for stronger competition against United,
Delta, American and Southwest, which control 84% of the domestic market.
Alaska announced plans to purchase Virgin America in April. The
transaction is valued at approximately $4 billion, including Virgin’s debt and
aircraft operating leases.