Alaska Air’s Virgin Bid Seen Facing Concerns Near Deadline
- Airlines said to pitch merger to top antitrust officials
- Justice Department has Sept. 30 deadline for acting on deal
The tails of a Virgin America Inc. plane, left, and an Alaska Air Group Inc. jet are seen at Seattle-Tacoma International (SEA) airport in Seattle, Washington, U.S., on Saturday, April 9, 2016. Alaska Air agreed to buy Virgin America for $2.6 billion, overcoming interest in the Richard Branson-backed carrier from JetBlue Airways Corp. to secure a deal that bolsters its main West Coast business while opening up key airports in New York and Washington.
Photographer: David Ryder/BloombergAlaska Air Group Inc. and Virgin America Inc. pleaded their case for their $2.6 billion merger to top Justice Department officials last week, according to people familiar with the matter, an indication that negotiations are in their final stages over whether the government allows the deal to proceed.
The airlines met with antitrust division chief Renata Hesse and other officials conducting the review to address government concerns that the combination could hurt competition, said one of the people. Such top-level meetings usually signal that the antitrust division has worries about a merger that could lead to a lawsuit to block it.