1 month ago

Alaska Airlines Retires Virgin America Brand

Alaska Airlines Retires Virgin America Brand
Alaska Airlines acquired Virgin America for $2.6 bn. Why did it retire the brand 2 years after closing deal? · financialexpress.com

Alaska Airlines bought Virgin America for $2.6 billion in 2016.

Virgin America was known for its stylish cabins and modern features like seatback entertainment and in-flight Wi-Fi.

However, Alaska Airlines decided to retire the Virgin America brand just two years later.

They wanted to have one strong brand instead of two, which would help them save money and make things simpler.

They also focused on markets where they had a stronger position.

But even after retiring the brand, Alaska Airlines had to keep paying royalties to the Virgin Group until 2039, as ruled by a court.

Key facts

Acquisition Amount
$2.6 billion
Acquisition Year
2016
Brand Retirement Year
2018
Royalty Payment Period
Until 2039
Virgin America Founded
2007
Virgin America Features
Seatback entertainment, in-flight Wi-Fi, power outlets, modern cabin experience
Alaska Airlines Fleet
All-Boeing 737
Virgin America Fleet
Airbus A320-family

Quotes

Alaska executive

Senior Alaska Airlines executive

“"One airline, one brand and one culture."”
financialexpress.com

Sources

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