It's official: Virgin America to merge with Alaska Airlines

I, quite often, deal with the "Well, back at Brand X, this would have NEVER happened"…

Corporate inertia, even in a well executed merger, is certainly a thing.

The new stage of caterwauling is about to begin when the new ACARS software goes from R2 displaying "< NWA REQUESTS" to "< DAL REQUESTS". @Richman's phone shall ring off the hook at the grand injustice…. crap, that is an anachronistic expression!
Truth is, it likely DID happen at Brand X.
 
The people that chase the "it's cheaper!" price are always going to chase the "it's cheaper!" price regardless. They're fickle, treat your airline like a urinal and have zero loyalty to your product. You will always be battling the new entrants with the introductory fares, think SWA in ATL then Frontier and Spirit show up to the party.

The high value customer, however, you've got to bring your "A Game" to retain. Everyone is after your best customers, every day.

A good percentage of your high value customers (or their travel departments or secretaries) never go to the "price grid" on Orbitz and book directly from their chosen airline's web page and don't really have the opportunity see the "Fly a beat up Tu-154 with the Chechen ACMI crew to Fresno for cheaper!"

Bossman says look sharp, tie your shoes and we'll throw money at you, do it. :)



(No offense to the Chechens and I'd like a chance to ride on a Tu-154 "Seven Twoski")

NetJets is a perfect example of this in the charter/fractional world. We are 28% more expensive per hour than the average charter company for the same aircraft. But we have to bring the A game. Virgin was a nice product customer wise, so maybe Virgin/Alaska can position themselves in such a way to secure a measurable percentage of the market now. My only fear is that through consolidation we will just have another LCC pop up thinking they can fill a void that doesn't exist...
 
NetJets is a perfect example of this in the charter/fractional world. We are 28% more expensive per hour than the average charter company for the same aircraft. But we have to bring the A game. Virgin was a nice product customer wise, so maybe Virgin/Alaska can position themselves in such a way to secure a measurable percentage of the market now. My only fear is that through consolidation we will just have another LCC pop up thinking they can fill a void that doesn't exist...
brb applying for an air carrier certificate with principal base of operations in the Bay Area
 
Lots of people at Virgin are calming DOT influence and airline lobby strong arming back when the airline started in 2007. I am not sure I buy it. DOT regs are DOT regs. He only controlled 22% of the company. I think it is a little far fetched that there was a large nefarious plan to prevent Branson and Virgin from succeeding in the U.S.
 
I don't understand why people keep saying they'd prefer jetblue have this deal? Nothing against Jetblue but if anyone's presence should be greater on the west coast, it should be alaska. just my opinion though.

There is a group that prefers Alaska to JetBlue. That group is VA's board and the stock-holders they represent.

Alaska has $1.3B in cash! I'm actually surprised there hasn't been a move to pay that back out as dividends.

I think Alaska over-paid. Most M&A deals result in a loss of net value.
 
Wish I would have bought some VX stock, hitting over $55/share today. Someone is making money on this deal.


Sorry bro, my first and I'm not sure if I'm even covered by ALPA as a probationary member.

What do you mean, if I correct in assuming you are a first year Alaska pilot? If so, you should be covered. You are an ALPA member and by the time it is all official and closes, you'll be off probation.
 
Back
Top