Is Alaska Airlines part of AmericanAlaska Airlines part of American Airlines?
The Alaska Air Group has recently announced the retirement of the Virgin America family. Now, she needs to concentrate on retaining Virgin America's best clients. With its atmospheric lights, high-quality furnishings and trendy corporate identity, Virgin America won a large fan base in California. Alaska Air (NYSE:ALK) did, however, acquire Virgin America at the end of 2016 and recently withdrew from the Virgin America family.
Energie, the Australian based Alaska Air management discusses whether the withdrawal of the Virgin America franchise represents a threat to Alaska Air's overall business results. For most travellers, it' more a matter of cost and comfort than fidelity to the franchise. But Virgin America had a impassioned fan-base who valued its luxury - and costly - first-class seating.
Dave and Tom have just unveiled what they believe are the ten best shares that can buy at the moment investor .... and the Alaska Air Group was not one of them! A step they have taken is obviously the reunification of the Virgin America trademark under the Alaska trademark. A few have reasoned that this may have estranged some Virgin Atlanticoyalists.
Yes, I would say the greatest threat to Alaska from the Virgin America acquisition is not to lose it. An overwhelming number of the Virgin America flyers would consider Alaska, or at least would consider Alaska. Virgin America was known for having this eight-seater first-class cab in all its aircraft, which was very unusual, essentially a stewardess for only these eight persons, huge chairs that were really comfortable, all sorts of other benefits.
It was a place where you couldn't get an upgraded just because you had flown a bunch, you actually had to buy the place. Conversely, there were only eight passengers per aircraft, so it is still not the largest portion of Virgin America's revenues.
But it was an important part of this deal. Alaska' will continue to have a first-class department. However, you are looking at the Economics Cab, I don't anticipate that much pressure from former Virgin America clients will ever be seen. Virgin America has done a great job with much of their own merchandising, but like you said, it probably won't hinder Alaska at all.
Adam Levine-Weinberg owns a stake in the Alaska Air Group.