Virgin America Inc. has attracted takeover bids from two big airline companies, Alaska Air Group Inc. and JetBlue Airways Corp. after Richard Branson, its primary financier put the carrier up for sale according to some individuals with knowledge of the negotiations.
According to these individuals who asked not to be identified, discussions are now being conducted by the Burlingame, CA-based company with the two bidders and a deal could be arrived at early next week.
There is no information offered by these individuals as to whether other bidders are interested in the carrier. It is also possible that the airline company will decide to remain independent.
But if the sale is consummated, Virgin America will be the latest airline company that will be merged with another bigger carrier. Branson's company provides long-haul, point-to-point airline service in the country.
As it is, people connected to the two companies interested on the takeover refused to give any detailed information.
"As a matter of company policy, we do not comment on market rumors or speculation," stated Morgan Johnston, JetBlue spokesman.
On its part, Bobbie Egan of Alaska Air Group told Frequent Business Traveler: "We don't speculate to rumors or speculation."
The offer from Alaska makes sense since it can restrict competition from the Burlingame, CA-based firm on air routes traversing the West Coast.
However, it would be simpler for JetBlue to absorb the fleet of Virgin since both carriers fly Airbus A320s. And should JetBlue get Virgin that could be a big expansion enabling it to build a network in the western region in which it has no connections at present.
"If the company were to sell itself, JetBlue would make the most sense from an aircraft, network and product offering perspective," said Helane Becker, a Cowen & Co. analyst in a Monday report.
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