Alaska acquisisce Virgin America (il marchio Virgin America sparirà nel 2019)

[AZ209]

Pare che l'avventura californiana di Sir Richard Branson sia vicino alla fine dopo soli 9 anni (escludendo Virgin Galactic).
Bloomberg ha rilasciato delle news riguardo offerte ufficiali di JetBlue ed Alaska Air Group per l'acquisto della compagnia, che a quanto pare ha dato mandato ai suoi advisors finanziari di curarne la vendita.
Pare che gia la settimana prossima potrebbero esserci le prime conferme. Per JetBlue potrebbe essere un'ottima mossa per espandersi sulla west coast.



Virgin America Gets Takeover Bids From JetBlue and Alaska Air

• Deal for carrier said to possibly happen as early as next week
• Richard Branson-backed airline went public only 18 months ago

Virgin America Inc. received takeover offers from JetBlue Airways Corp. and Alaska Air Group Inc. after the carrier backed by billionaire Richard Branson put itself up for sale, according to people familiar with the matter.
Discussions between Virgin America and the two bidders are ongoing, and a deal could be announced as early as next week, the people said, asking not to be identified discussing private information. It is unclear if other suitors will emerge, and Virgin America may yet decide to abandon sale negotiations in favor of remaining independent.
Last week, Bloomberg reported that the carrier, which flies to destinations throughout the U.S. and Mexico, was working with financial advisers on a sale after receiving takeover interest. Virgin America’s stock has been up almost 10 percent since then, giving it a market capitalization of $1.3 billion.
Virgin America shares jumped as much as 15 percent, and closed up 10 percent at $37.70 Monday. JetBlue gained 2.7 percent to $20.79, while Alaska increased 1.1 percent to $81.49.

Best Bidder

“If the company were to sell itself, JetBlue would make the most sense from an aircraft, network and product offering perspective,” Helane Becker, a Cowen & Co. analyst said in a report Monday.
Acquiring Virgin America would give JetBlue a larger presence on the U.S. West Coast, including in Los Angeles and San Francisco, and would eliminate a competitor for business travelers on lucrative cross-country routes. Strength in the western part of the country would complement JetBlue’s major presence in New York and network along the U.S. East Coast and in the Caribbean. Both airlines operate Airbus Group SE aircraft.
Alaska would eliminate a West Coast rival by buying Virgin America and would expand its route network in Mexico. Alaska primarily flies Boeing Co. planes.

Branson is the founder of the Virgin Group, which also owns stakes in gyms, hotels and telecommunications companies around the world. Virgin America started flying from San Francisco in 2007.
Virgin America last month reported 2015 adjusted earnings of $201.5 million, the most in the company’s history. The airline received five new Airbus A320 aircraft last year, with plans for five more this year, after slowing growth in 2012 to focus on long-term survival. It expects to grow capacity by 10 percent a year in 2017 and 2018.

Shareholder Plans

Virgin America is 54 percent owned by Branson’s fund, VX Holdings, and Cyrus Capital Partners, Becker said in the report. “The large shareholders could be seeking to monetize their investment with a sale to another investor or a partial sale to a foreign airline/company that would have a code-sharing agreement attached to it,” she said.
Virgin America, based in Burlingame, California, sold stock in a $353 million initial public offering less than 18 months ago, pricing its shares at $23 apiece, data compiled by Bloomberg show.
Alaska spokeswoman Bobbie Egan said the company doesn’t comment on rumors or speculation. JetBlue spokesman Doug McGraw said the carrier had the same policy. Virgin America didn’t return phone calls seeking comment.

http://www.bloomberg.com/news/artic...d-to-attract-jetblue-alaska-air-takeover-bids



Reports: Virgin America in buy-out talks with Alaska, JetBlue

Virgin America, which started operations out of San Francisco in 2007, is reportedly in talks to sell itself to either Alaska Air Group or US independent JetBlue Airways.
Bloomberg first reported the discussions, citing unnamed sources. Virgin America, JetBlue and Alaska are all declining comment.
According to multiple media reports, the sales talks are being driven by Cyrus Capital and Richard Branson’s Virgin Group, which together own a majority of the San Francisco-based airline’s shares. Virgin Group originally had a 25% stake in the carrier and Branson was front and center whenVirgin America launched, promising to improve upon the US airline industry’s “abysmal” service.
While the airline, an all-Airbus A320 operator, has gained plaudits for its mood-lit cabins and customized leather seats, it struggled for years to turn a profit, finally moving into the black in 2014. It raised more than $300 million in an initial public offering (IPO) in November 2014.
Virgin America CEO David Cush said at an industry conference last year that Virgin America and other smaller US airlines face a major competitive disadvantage because the consolidated legacy US airlines—American Airlines, Delta Air Lines and United Airlines—are squeezing them out of domestic US regional flight networks, narrowing the number of passengers with access to the smaller airlines.
New York-based JetBlue earned a $667 million net profit in 2015. Seattle-based Alaska, parent of Alaska Airlines and Horizon Air, reported net income of $848 million in 2015.

http://atwonline.com/operations-technology/reports-virgin-america-buy-out-talks-alaska-jetblue

 

[Farfallina]

Re: Virgin America in vendita, JetBlue ed Alaska candidate all'acquisto

Peccato perchè si rischia di perdere un'ottima compagnia...

 

[kenadams]

Re: Virgin America in vendita, JetBlue ed Alaska candidate all'acquisto

Peccato perchè si rischia di perdere un'ottima compagnia...

Alaska e Jetblue sono ambedue ottime compagnie, perfettamente in grado di preservare il livello qualitativo di Virgin America. L'importante - dal punto di vista del consumatore - è non leggere United, Delta, American fra i nomi degli acquirenti potenziali.

 

[AZ209]

Re: Virgin America in vendita, JetBlue ed Alaska candidate all'acquisto

Analisi interessante dove vengono menzionati, oltre a jetBlue, anche altri potenziali acquirenti tra cui HNA Group (Hainan), Delta, Etihad ed altri fondi di private equity. CAPA non menziona Alaska Air.



Virgin America sale speculation: Hainan, jetBlue and others. Timing could be critical for new owners

During nearly eight years of the airline's existence Virgin America’s ownership structure has atracted as much attention as its product positioning and positive customer sentiment. In late Mar-2016 reports surfaced indicating that the airline had received interest regarding a potential takeover, which led the airline to reach out to potential buyers.

That development led to a flurry of speculation about a prospective acquirer, with theories ranging from a US rival to foreign airlines or non-airline private equity firms. Any entity that has an interest in Virgin America must carefully examine the risk-reward scenario of purchasing an airline whose position in the US market remains small; it is not the dominant airline at its top four bases measured by seats – San Francisco, Los Angeles, Las Vegas and New York JFK.

The most logical element of a possible sell-off of all or part of Virgin America is that its long-time investors are finally ready to cash out now that the company has some level of sustained profitability. Conceptually while other airlines constitute logical suitors for Virgin America, other aspects of the US and global airline business need consideration while the future of Virgin America is unfolding.

Virgin America's investors may believe now is the time to cash out

​

In late Mar-2016 Bloomberg, citing individuals close to the matter, reported that Virgin America was reaching out to potential buyers after receiving takeover interest.

An expression of interest for a takeover cannot be ignored by Virgin America, which engaged in an initial public offering in late 2014. Its largest shareholders remain VX Holdings and Cyrus Capital, which have held the greatest stakes in the company since its 2007 debut. With Virgin America posting three consecutive years of profits, now could be a favourable time for those two firms to recoup some of their investment in the airline.
The airline has also grown its ROIC from 11.2% in 2013 to 17.9% in 2015.

Virgin America net profit/loss: 2008 to 2015

Source: CAPA - Centre for Aviation and company reports

But many questions about a potential sale remain unanswered, such as the licensing of the Virgin brand. Although Richard Branson wants a return on his investment in the airline, it would be hard to believe there would not be some stipulation in a sale agreement that included continued licensing of the Virgin brand; the typical agreement involves a continuing royalty payment from the airline based on topline revenue. Such a scenario may be easier to accomplish with a non-US airline or private equity firm.

Virgin America’s existing licensing agreement with the Virgin Group covers operations in North America and the Caribbean. Virgin America can place its code on other routes of other airlines but not on Virgin Atlantic’s routes over the North Atlantic, which during the last couple of years have expanded under a joint venture with Delta Air Lines.

Hainan Airlines and Etihad would face complexity, challenges in pursuing Virgin America

Two of the foreign airlines that have emerged in the speculation as potential buyers for Virgin America are Hainan/HNA and Etihad.

The holding company that controls Hainan, HNA Group, has grown its airline portfolio investments outside China, including airlines inAfrica, France and Turkey. In 2015 HNA opted to take a 23.7% stake in Brazilian airline Azul - which in turn acquired a minority share in Portuguese flag carrier TAP.

A motivating factor for HNA’s potential interest in Virgin America is China’s ‘one airline, one route’ policy that a sets a limit of only one Chinese airline authorised to operate a long haul service. As a result, Hainan’s US footprint is limited to smaller markets such as Boston orSeattle since Air China and China Eastern serve larger markets, including New York and Los Angeles from Beijing and Shanghai.

There is no such limit in the reverse direction from the US to China, as long as traffic rights are available. If Hainan acquired a US airline it could overcome some of the traffic restrictions on Chinese airlines serving the US. However, there is inherent complexity in a potential acquisition of Virgin America by HNA group.

This complexity includes the highly restrictive ownership restrictions in the US, and general backlash by larger US airlines over foreign ownership stakes in smaller US airlines. Those airlines mounted a formidable challenge to the establishment of Virgin America, and some years laterAlaska challenged Virgin America’s ownership structure when the upstart upped competition in some of Alaska’s US West Coast markets.

Virgin America could be a target for Etihad’s strategy of building alliances by acquisition. However, although the subsidy debate waged by American, Delta and United against Emirates, Etihad andQatar seems to have quietened down, a move by Etihad to take a stake in Virgin America could reignite the subsidy battle.
The result potentially being a charge by the Big 3 that Virgin America's owners are supported by what they deem as illegal subsidies. Etihad needs to weigh the ownership backlash it could face by pursuing a stake in Virgin America versus the overall benefit that Virgin America could bring Etihad in the US market. Etihad has an existing relationship with Virgin America as well as with American and jetBlue.

Delta's pursuit would likely require some concessions for approval

Among potential US airlines that may have an interest in Virgin America, Delta and jetBlue seem like logical choices, in theory. Delta has been acquiring stakes in foreign airlines during the last couple of years in regions where it has historically had a network weakness versus rivals American and United, including a 49% stake in Virgin Atlantic.

Delta would likely have an interest in Virgin America’s positions at Los Angeles International airport and Dallas Love Field. But a data snapshot from CAPA and OAG for the week of 28-Mar-2016 to 3-Apr-2016 shows that a Delta-Virgin America combination would result in Delta being roughly on par or just slightly ahead of American in Los Angeles measured by seat share, rather than surpassing American for dominance.
Gates at Los Angeles are valuable, and Delta and American have been battling to attain dominance at the fragmented airport during the last couple of years.

Los Angeles International Airport capacity by airline: 28-Mar-2016 to 3-Apr-2016

Source: CAPA - Centre for Aviation and OAG

One of the reasons that Virgin America won slots at Dallas Love Field is that US regulators wanted to ensure that low cost airlines would have access to key regions after consolidation of the large US major airlines. A settlement between American and the US Department of Justice entailed American divesting gates at Love Field, and Virgin America moved its operations from Dallas/Fort Worth to Dallas Love Field in late 2014.

Delta would likely face considerable opposition from US regulators if it opted to pursue Virgin America, given its stature as the third largest US airline measured by domestic seat deployment. Essentially, there would be one less LCC in the market place, which would require concessions that could presumably outweigh potential benefits for Delta in acquiring Virgin America.

United States of America domestic capacity by airline (% of seats): 28-Mar-2016 to 3-Apr-2016

Source: CAPA - Centre for Aviation and OAG

Perhaps not be the best time for jetBlue to pursue an M&A

jetBlue also seems like a logical pursuer of Virgin America given that both airlines are Airbus A320 operators and drive positive consumer sentiment. A jetBlue acquisition would allow it to gain access to lucrative US West Coast markets and would eliminate a competitor in the transcontinental market.

A tie-up between jetBlue and Virgin America would not draw as much ire from US regulators, considering their comparative sizes relative to other US airlines. Based on their currentfleets (29-Mar-2016), combined jetBlue and Virgin America operate 277 aircraft – 217 at jetBlue and 60 at Virgin America.

jetBlue often fields queries about further consolidation in the US and its potential role in future mergers. The consistent response of management is that the airline plans to remain independent.

For jetBlue, the timing may not be ideal to pursue acquisitions. The company is in the midst of strengthening its balance sheet and driving down its leverage ratios. At YE2015 jetBlue’s cash balance was USD318 million and its short-term investments totalled USD558 million, along with an undrawn revolver of USD400 million.
Combined those amounts totalled 20% of its trailing 12M revenue, which the agency stated was sufficient to meet the airline’s needs. Virgin America also has a higher percentage of leased aircraft - 90% - while jetBlue owns 73% of its fleet and is working to increase its number of unencumbered assets.

Virgin America owned vs leased for aircraft as of 29-Mar-2016

Source: CAPA Fleet Database
Orders include those placed directly by the operator and by lessors assigned to the operator, from 29-Mar-2016 onwards.

jetBlue may not have much of an appetite to seek financial support for an acquisition or takeover that will add complexity to its financial commitments as it works to position itself to offer more comprehensive shareholder returns beginning in 2017.

Controlling stake by private equity could allow Virgin America its independence

It seems more viable for a private equity firm to take total ownership or a controlling stake in Virgin America rather than for another airline entity to take over the company. US regulators seem to have little appetite for further consolidation and any pursuit by a foreign airline is likely to meet strong opposition - even if it would be a healthy development in a market which is now tightly held and leveraging very highfares by international standards. The private equity path would allow Virgin America to pursue its growth strategy independently.

One certainty is that the hype over a potential sale of Virgin America is likely to die down before a definitive decision about the company’s future ownership is made. Although tie-ups with other airlines seemingly look viable on paper, in reality the execution of such acquisitions is rife with challenges.
That is not to say that change is impossible, even in the very conservative and well protected US market. Sir Richard Branson's group is certainly wiling to sell down, at the right price and it would be dangerous to rule out any possibility.

http://centreforaviation.com/analys...iming-could-be-critical-for-new-owners-273647

 

[FlyKing]

Re: Virgin America in vendita, JetBlue ed Alaska candidate all'acquisto

Il WSJ riporta che Virgin America sarebbe in procinto di chiudere l'accordo con Alaska

"Alaska Air Group Inc. has emerged as the likely winner of an auction for Virgin America Inc. The company is nearing a deal to buy Virgin America after beating a rival bid by JetBlue Airways Corp., people familiar with the situation said. There is no guarantee Alaska Air ultimately will clinch the deal, but if it does, an announcement could come Monday, they added. Alaska Air is expected to pay upwards of $2 billion for Virgin America, which has a market value of about $1.5 billion, following a surge sparked by recent news that the company was in play, one of the people said."

http://www.wsj.com/articles/alaska-air-nearing-deal-to-acquire-virgin-america-1459620895

 

[EY460]

Re: Virgin America in vendita, JetBlue ed Alaska candidate all'acquisto

http://splash.alaskasworld.com/Newsroom/ASNews/ASstories/AS_20160404_025411.asp

E' ufficiale l'acquisto di Virgin America da parte di Alaska Airlines.

 

[danusa86]

Re: Virgin America in vendita, JetBlue ed Alaska candidate all'acquisto

Il sito dedicato al merger: http://flyingbettertogether.com/

 

[AZ209]

Re: Virgin America in vendita, JetBlue ed Alaska candidate all'acquisto

http://splash.alaskasworld.com/Newsroom/ASNews/ASstories/AS_20160404_025411.asp

E' ufficiale l'acquisto di Virgin America da parte di Alaska Airlines.

Anche se a breve termine rimarranno due brand distinti con sede centrale a Seattle, non mi sembra ancora molto chiaro quale sia l'intenzione nel medio.

 

[millenove77]

Re: Virgin America in vendita, JetBlue ed Alaska candidate all'acquisto

Anche se a breve termine rimarranno due brand distinti con sede centrale a Seattle, non mi sembra ancora molto chiaro quale sia l'intenzione nel medio.

Dalle rotte incrociate si nota quanto siano estremamente focalizzati sulla west coast... sembra quasi di rivedere il routing map della vecchia America West con SEA al posto di PHX...
http://flyingbettertogether.com/content/uploads/2016/04/NewRouteMap_2C_new_legend_V2.pdf

 

[kenadams]

Re: Virgin America in vendita, JetBlue ed Alaska candidate all'acquisto

Anche se a breve termine rimarranno due brand distinti con sede centrale a Seattle, non mi sembra ancora molto chiaro quale sia l'intenzione nel medio.

Il valore del marchio Virgin è notevole, soprattutto in California: non so che accordi abbiano preso col gruppo di Branson, ma a naso credo abbia pienamente senso continuare a mantenere identità separate.

 

[classic289]

Re: Virgin America in vendita, JetBlue ed Alaska candidate all'acquisto

Provato Virgin recentemente un paio di volte (voli di un 1h.30). Esperienza molto molto piacevole.

Credo che sui voli di medio raggio alitalia possa prendere esempio.

 

[AZ209]

Re: Alaska acquisisce Virgin America

A me rimane qualche punto interrogativo, nel senso che e' vero che Virgin America ha un ottimo brand ed e' finalmente una compagnia che produce utili, ma e' anche vero che non ha ne vere e proprie posizioni dominanti (in California e' molto presente ma in maniera diffusa), ne una flotta di proprieta' (oltre il 90% dei 60 A319/320 sono in leasing). Anche l'integrazione di flotte (AS ha praticamente all-737) sara' interessante da valutare in ambito di sinergie atte a ridurre i costi.
Sono invece sicuramente appetibili e preziosi gli slots di Virgin America su aeroporti congestionati della east coast.
Detto questo, gli azionisti di Virgin America nell'ultimo mese (valore quasi raddoppiato) stanno sicuramente facendo festa.

 

[londonfog]

Re: Alaska acquisisce Virgin America

Mi sembra di capire che nel breve/medio mantengano i due brand separati. Questo da tempo ad Alaska di creare un servizio premium per i voli coast-to-coast in grado di competere con Mint di Jet Blue e con AA e UA. Alaska attualmente ha un buon nome ma non ha niente che possa competere con Mint o con i servizi a tre classi che AA e UA offrono su certi voli coast to coast.

Alaska ha una forte presenza nel Nord-Ovest (Washington State e Oregon) e una minore presenza in California. Virgin+Alaska hanno una rete di voli da SFO e LAX piu' 'difendibile'.

Guardando la dichiarazione congiunta non capisco cosa succedera' a Dallas dove lo 'scissor hub' di Dallas Love Field non viene nemmeno nominato. Spero solo che non diventi un secondo caso United dove dopo anni dalla fusione senti ancora parlare di equipaggi e allestimenti ex-Continental o ex-United.

 

[TW 843]

Re: Alaska acquisisce Virgin America

Alaska Airlines just massively overpaid for Virgin America, and it's a deceptively smart move



Seattle-based Alaska Airlines announced Monday that it would acquire Virgin America for $2.6 billion after a short bidding war with JetBlue.



The value of the deal, including Virgin's debt and aircraft-leasing obligations, could reach $4 billion.


Though Virgin America is regarded by consumer-ratings agencies as the best airline in North America, Alaska paid nearly twice what it last traded at.


"Fifty-seven dollars per share seems like a steep price for Virgin America, when it had been trading at between $26 and $37 over the last year," Warwick Business School professor of business strategy Loizos Heracleous told Business Insider.



"The bidding war for Virgin America has raised the price to levels that will make it challenging for Alaska Air to garner benefits that can justify this price, at least in the short term," Heracleous said.



The airline's $2.6 billion price tag is about 16 times the airline's 2015 earnings, Vinay Bhaskara, a senior business analyst at Airways News, told Business Insider.


"Even with cratering fuel prices and the airline earning cycle at its peak, Virgin America hasn't been able to be very profitable," Bhaskara said.


So what, exactly, did Alaska Airlines buy?


Although Virgin America operates a fleet of 60 Airbus A320-family jets, the airline owns only five of them, with the rest leased from various companies around the world.


As a result, Virgin America's most valuable assets are its terminal space at San Francisco International Airport and Los Angeles International Airport, along with landing rights at Love Field in Dallas, LaGuardia in New York, and Reagan National in DC, Bhaskara added.


And then there's the cachet of the Virgin brand, which brings intangible value to the airline.

At first glance, forking out $4 billion for some terminal space, landing rights, and a few jets makes little sense, but a deeper analysis shows that Alaska's move, though risky, may be a smart buy for three key reasons.



First, the acquisition of the San Francisco-based airline keeps Virgin America and its sizable West Coast presence out of JetBlue's control. New York-based JetBlue has a strong East Coast and transcontinental business, but it still lags behind Alaska, Virgin America, and Southwest in its ability to serve the western US.


Acquiring Virgin would have given JetBlue instant scale on the West Coast and bolster its already formidable transcontinental business.


Second, Alaska's acquisition of Virgin America makes it an instant powerhouse airline that's a viable competitor to juggernaut Southwest, Bhaskara told Business Insider.


Alaska, the seventh-largest airline in the US, now has additional resources to scale up operations in key markets around the country, such as Dallas and New York.


Virgin America's large presence in San Francisco and Los Angeles also allows Alaska to fortify its position in those two very competitive markets.


Third, Alaska Airlines is a major brand and big-time player in the western US. But it remains relatively unknown to a lot of travelers on the East Coast and abroad. The acquisition of an airline tied to a world-renowned brand allows Alaska to make a big splash outside its traditional market.


Time will tell if the Virgin America acquisition will pay off for Alaska, but there's no doubt the deal will greatly affect the landscape of the commercial air travel on the West Coast.



(Benjamin Zhang - Business Insider)

 

[AZ209]

Re: Alaska acquisisce Virgin America

Anche l'integrazione di flotte (AS ha praticamente all-737) sara' interessante da valutare in ambito di sinergie atte a ridurre i costi.

In merito a questo tema c'e' un articolo interessante su ATWonline:

Five factors determining whether Alaska keeps Virgin America’s A320s

Executives at Alaska will quickly be faced with fleet decisions following the planned Jan. 1, 2017 closing of the merger.

If a computer program designed a Boeing vs. Airbus test case, it likely couldn’t come up with a better scenario than the proposed Alaska Airlines-Virgin America merger. Both airlines (excepting Alaska regional affiliate Horizon Air’s fleet) are all-narrowbody aircraft operators with North America-only networks and both have signed up for next-generation, re-engined narrowbodies.
These two airlines’ management teams, faced with very similar aircraft needs, have made opposite choices: Seattle-based Alaska operates all Boeing 737s and San Francisco-based Virgin America operates all Airbus A320 family aircraft. Alaska has 37 737 MAX aircraft on order and Virgin America has 40 A320neo family aircraft on order.
Virgin America, in fact, was the first airline in the world to make a firm commitment to the A320neo. Interestingly, after three other A320neo customers chose the Pratt & Whitney geared turbofan engine to power their aircraft, Virgin America became the first to choose the CFM International LEAP engine to power its neos; a variation of the LEAP exclusively powers the MAX (more on this later).
If the merger gains regulatory approval, the executives at Alaska, who will run the combined airline, will quickly be faced with fleet decisions following the planned Jan. 1, 2017 closing of the transaction. Given that gaining access to Virgin America’s facilities and slots at San Francisco (SFO) and Los Angeles (LAX) International Airports was the primary attraction of acquiring Virgin America—not aircraft—will Alaska executives move to dump Virgin America’s Airbus fleet? There is certainly a perception that this will happen. But Airbus has a unique opportunity to convince a Boeing believer that its offering is, if not better, at least just as good and worth keeping around.
Here are the five biggest factors that will determine whether any or all of Virgin America’s 60 A320 family aircraft (with three more still set to be delivered) will remain in a post-merger Alaska’s fleet and/or whether Alaska will take delivery of any or all of the 30 A320neos and 10 A321neos Virgin America has on order:

1. How open-minded will Alaska executives be? “One of the things that does happen when you do something like this … is we’ll get a chance to look under the covers of another company that has done some things very well,” Alaska president and CEO Brad Tilden told analysts and reporters on an April 4 conference call. He and other Alaska executives repeatedly said during the call that while they don’t have much familiarity with Airbus aircraft, they are looking forward to learning about Virgin America’s fleet. What will they learn? If they like what they see, could it dent their Boeing bias?
2. It is relatively easy, and pain free, for Alaska to get out of the Virgin America fleet. Nearly all of Virgin America’s A320s are leased, not owned, and those leases start expiring in 2020. So Alaska could just let the leases expire and walk away from the aircraft. Alaska CFO Brandon Pederson said there is a “favorable cancellation provision” on Virgin America’s future A320neo order, indicating Alaska wouldn’t have to pay a heavy penalty for not taking delivery of these aircraft. The 30 A320neos aren’t set to deliver until starting in 2020, so Alaska would have a little time to think about this. However, one of the first decisions Alaska would have to make post-merger is whether to accept 10 A321neos Virgin America has agreed to lease from GE Capital Aviation Services (GECAS) with deliveries starting in the 2017 first quarter and set to be completed by the end of 2018. But since this is a lease deal (and GECAS probably wouldn’t have too hard of a time placing these aircraft elsewhere) cancelling the A321neos likely wouldn’t be too costly for Alaska.
3. Maintenance costs and fleet commonality. Alaska is a strong, strong proponent of the advantages of operating a single fleet type, so the company’s executives will spend considerable time analyzing how much higher maintenance and other fleet-related costs will be if it moved to a dual fleet. However, as mentioned above, there would be some maintenance commonality regarding neo and MAX engines since Virgin America is going with the LEAP-1A to power its neos. (The MAX is powered by the LEAP-1B.)
4. Without the Virgin America A320 family fleet, how would the “new” Alaska maintain its growth? Tilden said the post-merger Alaska would seek to maintain the same annual 4%-8% growth rate as the pre-merger Alaska. This growth rate would not include the increase in size from combining the two airlines; in other words, the combined Alaska/Virgin America would generally plan to get about 4%-8% bigger per year compared to the combined size of the two airlines pre-merger. So if Alaska drops the current A320 family aircraft and backs out of the future A320neo family deliveries, how will it grow as much as it plans? This is where Boeing could swoop in and offer a sweet deal to Alaska on additional 737NGs and 737 MAXs to (a) keep Alaska as an “all-Boeing” operator and (b) deliver a serious blow to Airbus—Virgin America, which routinely wins plaudits for its service aboard its A320s, was a real Airbus success story, demonstrating exactly what could be done with an A320 cabin.
5. That brings us to the final major factor: What kind of product does the “new” Alaska plan to offer passengers? Tilden said he believes Alaska and Virgin America have “more in common than not,” but acknowledged there are key differences in the two airlines’ products. Virgin America is known for mood-lit cabins, customized leather seats and cutting-edge seatback inflight entertainment systems. Alaska’s more utilitarian cabins offer “direct-to-your-device” IFE in which passengers download a Gogo Video Player onto their own portable device prior to takeoff. One of the big questions Alaska will have to answer post-merger is whether its onboard product is suited for the kind of high-end passengers traveling transcontinental on Virgin America from SFO and LAX to New York. Indeed, after beating out JetBlue Airways in a bidding battle for Virgin America, the last thing Alaska wants to see happen is for Virgin America’s high-end transcontinental customers to switch to JetBlue or other airlines because they are no longer getting the “Virgin” service on those 5-plus hour flights. Might it be simplest to keep at least some of Virgin America’s A320s—and the service they are designed to provide—for these transcontinental flights?

 

[AZ209]

Re: Alaska acquisisce Virgin America

Ad una settimana dall'annuncio dell'acquisizione di VX, il gruppo Alaska Air ha firmato un ordine fermo per 30 E175 per la controllata Horizon Air. Un ordine significativo che aiutera' l'espansione del gruppo, con l'utilizzo del E175 per le rotte piu' sottili per poter far anche da feeder alla mainline.
Interessante anche la configurazione degli E175 che avranno 3 classi - 12 business, 16 premium economy e 48 economy.
http://atwonline.com/airframes/alaska-air-group-subsidiary-horizon-air-orders-30-e175s

Alaska Air Group subsidiary Horizon Air orders 30 E175s

Horizon Air, a subsidiary Alaska Air Group, has placed a firm order for 30 new Embraer E175s and also took 33 E175 options.
The order, valued at $2.8 billion including the options, represents the largest aircraft purchase ever made by Horizon, which currently operates a fleet of all Bombardier Q400 turboprop aircraft. The regional airline said it will operate the E175s exclusively under the Alaska Airlines brand, feeding Alaska’s mainline Boeing 737 network. Deliveries will start next year and continue through 2019.
The move into regional jets by Seattle-based Alaska Air Group, also the parent company of Alaska Airlines, comes a week after the company announced it had reached an agreement to acquire Virgin America for $2.6 billion plus the assumption of $1.4 billion in debt and lease obligations.
“Embraer’s E175 will allow [Horizon] to fly long, thin routes—destinations that are too distant for a turboprop, but currently don’t have enough customer demand to fill a mainline jet,” Horizon said in a statement.
Horizon president David Campbell added, “The E175s position Horizon for growth beyond our current West Coast destinations while providing better customer utility in the growing Alaska Airlines network. The spacious E175 offers a passenger experience that’s on par with much larger jets. This aircraft opens up tremendous new opportunities to fly to new places that would not have been feasible with our existing aircraft.”
Horizon said it will retire 15 of its 52 Q400s in 2018, when leases expire on the 15 turoprops. “Horizon Air will fly both the E175 and the Q400 for the foreseeable future,” Horizon said. “The Embraer jet is not new for Alaska customers, who may have flown on the regional aircraft in 16 markets operated by [capacity purchase agreement] partner SkyWest Airlines.”
Horizon will configure the E175s with 76 seats, including 12 in first class, 16 in premium economy and 48 in standard economy with a 31-inch pitch.

 

[AZ209]

Re: Alaska acquisisce Virgin America

JetBlue CEO: Virgin America price became too high

New York-based JetBlue Airways president and CEO Robin Hayes has confirmed publicly for the first time that JetBlue was the rival bidder for acquiring Virgin America, which has entered into an agreement to be purchased by Seattle-based Alaska Air Group.
Alaska agreed to pay $57 per share for San Francisco-based Virgin America, and has said the highest bid of the rival bidder was $55 per share. “We did consider acquiring Virgin America as a way to more quickly build our [US] West Coast presence,” Hayes told analysts during an April 26 conference call. But he explained that the price reached a point where JetBlue concluded it would make more sense for it to continue to organically grow on the West Coast.
“Acquiring Virgin America would have simply accelerated” organic West Coast growth plans already in place, Hayes said, adding that JetBlue came to view buying Virgin America as “a nice to have rather than a must have” deal.
Hayes said that, among other potential West Coast growth opportunities, JetBlue is considering starting international service from Long Beach Airport (LGB) in southern California.
JetBlue is also accelerating expansion of its transcontinental premium Mint service. The airline said 12 of the next 16 Airbus A321s being delivered to it will be in the Mint configuration, including nine of 10 scheduled to be delivered in 2017.

http://atwonline.com/airlines/jetblue-ceo-virgin-america-price-became-too-high

 

[kenadams]

Re: Alaska acquisisce Virgin America

Alaska Airlines rinuncerà al marchio Virgin America.

http://www.aviazionecivile.it/news/addio-virgin-america/

 

[kenadams]

Pare che Alaska Airlines intenda concentrarsi su una flotta unicamente di Boeing 737.
- Destinati a uscire dalla flotta a partire dal 2021 gli A320 di Virgin America.
- Il lancio del 737 MAX 10 riduce l'utilità di mantenere A321 NEO in flotta.
- Il costo di mantenere una flotta mista è stimato in $20-25 milioni annui.

http://host.madison.com/business/in...cle_ec1491b9-3382-5c13-bd36-b5bee16f6f42.html

 

[frubagotti]

Le cose in Alaska non stanno andando tanto bene?

As Alaska Air cuts costs, employee discontent grows and passenger loyalty is at risk
Amid a constant push for cost cutting, a challenging merger at Alaska Airlines and operational turmoil at Horizon Air, many Alaska Air pilots and cabin crew are deeply dissatisfied. Facing stiff competition from Delta, Alaska’s winning reputation for customer service is at risk.

https://www.seattletimes.com/busine...ntent-grows-and-passenger-loyalty-is-at-risk/