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BUSINESS A25
Tuesday 5 April 2016
Alaska Air buys Virgin America to expand West Coast flights
D. KOENIG ed Airlines — controlled a Branson and began flying by the end of this year. Airbus jets.
S. MAYEROWITZ combined 83 percent of in 2007. It went public in Alaska Airlines will pay $57 The deal marks a shift in the
AP Airlines Writers domestic seats in the past November 2014 with an ini- in cash per Virgin America size of consolidations within
NEW YORK (AP) — Alaska year, according to an AP tial stock offering priced at share. That’s a 47 percent the airline industry. For more
Air Group Inc. is buying Vir- analysis of data from Diio, $23 per share. Virgin, which premium to its Friday clos- than a decade consolida-
gin America in a deal worth an airline-schedule track- turned profitable — barely ing price of $38.90. Virgin’s tion swept through the ma-
$2.6 billion, making Alaska ing service. — in 2013, earned a record shares rose 40 percent in jor players, reducing the
the biggest carrier on the Alaska said the deal will $340.5 million last year. morning trading. The com- largest nine carriers in 2005
West Coast and reignit- add Virgin’s 200 daily de- The airline slowed down its panies put the transaction’s to four airlines by the end
ing the debate over airline partures to its existing 1,000
consolidation. daily flights. The airline cur- Brad Tilden, Alaska Airlines president and CEO, talks to reporters, Monday, April 4, 2016, at the
The proposed merger also rently serves 112 destina- airlines’ corporate headquarters in Seattle. Alaska Airlines’ parent company announced Monday
would give Seattle-based tions in the U.S., Canada that it will pay $2.6 billion to buy the Richard Branson-inspired, California-based Virgin America.
Alaska a foothold in key and Mexico.
airports in New York and Both airlines have very loyal (AP Photo/Ted S. Warren)
Washington D.C., increas- followings in their respec-
ing the airline’s appeal tive hometowns. Virgin rapid growth and got help value at about $4 billion, of 2013. The Alaska buy-
to business travelers. quickly won over passen- from low fuel prices. Virgin is including debt and capi- out of Virgin indicates that
“Our goal is to be the pre- gers with its new jets, friend- being forced to restart that talized aircraft operating consolidation has shifted to
mier airline for people ly crews, trendy mood light- growth this year as it takes leases. The combined busi- smaller players.
along the West Coast,” ing, extensive seatback en- delivery of new jets ordered ness will be based in Seattle While Virgin has experi-
Alaska CEO Brad Tilden told tertainment systems, power years ago that can’t easily with Tilden as its CEO. It will enced growth in Dallas
investors on a call Monday outlets at every seat and be cancelled. New routes have about 280 aircraft in- and added new service to
morning. In Virgin’s home- meals on-demand. All of often start at a loss. cluding regional planes. Hawaii and Denver, the air-
town of San Francisco, for that could go away if Alas- Alaska first approached Vir- Alaska has been a loyal line was having trouble get-
instance, Alaska currently ka choses to fly a uniform gin about a sale in the fall Boeing customer for years, ting enough takeoff and
only flies to Seattle. Fol- fleet, a decision company and — pending approval flying almost entirely a fleet landing slots at busy New
lowing the merger, it also executives say they are still by Virgin shareholders in of 737s, manufactured just York airports, where access
would fly from San Francis- debating. June and by government a few miles from its head- is restricted by government
co to several key markets Alaska fliers are just as loyal, regulators — hopes to close quarters. Virgin only uses limits. q
including New York, Los An- loving the airline’s compas-
geles, Las Vegas, Chicago, sion. Like other carriers, it
Boston, San Diego, Denver charges for bag fees but
and Washington D.C. was the first to add a ser-
The merger pushes Alaska vice guarantee: if a bag
ahead of JetBlue Airways doesn’t make it to the claim
— which had also bid for area within 20 minutes, fliers
Virgin — to become the get $25 off a future trip or
fifth largest carrier in the 2,500 bonus miles.
U.S. based on passengers. Virgin America’s Elevate
The combined airline would loyalty program members
control 5.5 percent of do- will become part of Alaska
mestic passengers, com- Air’s Mileage Plan. The two
pared to New York-based loyalty programs will re-
JetBlue’s 4.2 percent. By main separate until the ac-
comparison, the four larg- quisition closes.
est U.S. airlines — Ameri- Virgin America got off the
can Airlines, Delta Air Lines, ground with support from
Southwest Airlines and Unit- minority owner Richard
Gilead paying up to $1.2B for
Nimbus unit, drug candidate
LINDA A. JOHNSON ceive another $800 million enue starts falling. That’s
AP Business Writer if Nimbus Apollo’s drug de- already begun in the U.S., Address : Malmok Weg 39
Biologic drugmaker Gilead velopment program meets due to increasing compe- (near entrance to Tierra Del Sol),
Sciences Inc. said Monday certain milestones in testing tition and pressure from in-
that it will buy a subsidiary results and medicine ap- surers for bigger discounts 5 bedroom ,4 bath house w/separate apartment,
of Nimbus Therapeutics LLC proval and sales. off their list prices: about
and its experimental pill for Gilead has been sitting on $84,000 for a course of Date:Sunday April 10 Time : 2pm-4pm.
an increasingly common billions generated by its treatment with Sovaldi and Price USD $ 550,000.00.
metabolic disorder that lucrative hepatitis C medi- $94,000 for combination
causes life-threatening fat cines, Harvoni and Sovaldi. drug Harvoni. GREAT LOCATION FOR INVESTMENT OR FAMILY HOME,
buildup in the liver. At the end of 2015, it held The Nimbus deal brings
Gilead, based in Foster $26.2 billion in cash and Gilead a drug that could
City, California, will pay cash equivalents. treat fatty liver and possibly
$400 million for Nimbus Investors have been ex- liver cancer and other dis-
Apollo Inc. Parent com- pecting Gilead to use that eases, plus technology for
pany Nimbus Therapeu- on deals to boost its pipe- “designing” more-targeted
tics, based in Cambridge, line of experimental drugs medicines faster.q
Massachusetts, could re- before the hepatitis C rev-
