Explore the latest developments concerning Why Alaska Airlines.
Why Alaska Airlines Paid $2.6 Billion For Virgin America Then Retired Its Brand Within 2 Years Of Closing The Deal
Alaska Airlines has recently completed its acquisition of Hawaiian Airlines. While the two are now one entity and are operating on a single certificate, Alaska will maintain Hawaiian as a separate brand. Naturally, both names have ties to their geographic locations and hold strong local brand significance as a result. It's an unusual decision since airline mergers/acquisitions usually result in only one of the names surviving, and Alaska Airlines had previously done just that with its 2016 acquisition of Virgin America.
But Alaska Airlines was even more tied to its main area of operations back in 2016 than it is today, and Virgin America was arguably the most beloved airline brand in the US at the time. Alaska promoted the acquisition with its special 'More to Love' livery, and yet, the famed Virgin America brand disappeared within two years of the acquisition. To this day, Alaska even pays royalties to the Virgin Group for the rights to the Virgin America name, regardless of whether it actually uses the brand.
Alaska Airlines retired Virgin America brand after $2.6B purchase
Alaska Airlines bought Virgin America for $2.6 billion in 2016 but phased out its brand within two years. The airline kept paying royalties to Virgin Group despite discontinuing use. Now, Alaska is preserving Hawaiian Airlines’ brand after its 2026 merger, a strategic shift.
Alaska Airlines acquired Virgin America in 2016 to block JetBlue’s expansion into the West Coast, paying $2.6 billion in equity. Virgin America’s A320 fleet was retired, hubs scaled back, and its brand discontinued by 2018. The move aimed to unify operations under Alaska’s Boeing 737 fleet and strengthen its national identity.
Despite dropping the Virgin America name, Alaska still pays royalties to the Virgin Group through 2039, per a 2023 London High Court ruling. The airline’s current merger with Hawaiian Airlines marks a reversal: Hawaiian’s brand and routes will remain intact, reflecting Alaska’s broader regional ambitions and customer loyalty considerations.
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Remember That Alaska Airlines Family Flight Saga? Here’s The Conclusion…
Several weeks ago, I wrote about how Alaska Airlines wrongly denied a family boarding, and then kicked them off the next flight, with that second removal being due to a “clash of personalities” with the crew. There are a lot of details there, so please read those two posts before continuing to read. I won’t recap what happened, as this post will be long enough already.
Well, if you were curious what the outcome was, here you have it. Long story short, Alaska conducted a surprisingly thorough investigation, and I find the response to be interesting.
Following that everything unfolded in the stories linked above, OMAAT reader Christophe submitted a formal complaint with the airline, and also filed complaints with regulators in the United States and Canada, given the denied boarding and flight removal element of this.
For more detailed information, explore updates concerning Why Alaska Airlines.
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