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Alaska Air Acquisition of Virgin America |
Alaska Air buys Virgin America, aims to become best out West -- Virgin America has loyal passengers who love the airline's cool vibe even if its size and schedule are too limited to meet all their travel needs. But it appears to be going away. Alaska Airlines' parent company announced Monday that it will pay $2.6 billion to buy the Richard Branson-inspired, California-based carrier. Alaska hopes to become travelers' preferred airline on the West Coast and a tougher competitor to giants American, Delta and United on transcontinental routes. David Koenig & Scott Mayerowitz/AP
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Alaska acquires Virgin America with an eye on growing California -- In what can only be considered a most unlikely and incredibly successful exit for Virgin America's owners, Alaska has agreed to buy the airline for a whopping $2.6 billion in addition to assuming $1.4 billion in debt. I spoke with the folks at Alaska, I've done about a half dozen interviews, and I've pondered this merger in the middle of the night. In the end, I can see how Alaska finds value here, but $2.6 billion worth of value? That's a lot. The overarching theme of this merger is one word... California. Brett Snyder/Cranky Flier
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To Alaska Airlines, rival Virgin America is worth a lot more dead than alive -- Why in the world is Alaska, one of the most conservatively and successfully managed U.S. airlines, paying so much for so seemingly little? The only logical reason why Alaska was so willing to pay so much to outbid JetBlue to acquire Virgin America is that Alaska desperately needs to get rid of the low fare carrier causing it the most, and the biggest headaches. Dan Reed/Forbes
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Virgin America discovers price beats mood lighting -- The $2.6 billion sale of Virgin America Inc. shows that it just doesn't pay to be different. Despite the mood lighting, club music, touchscreen food orders, and additional frills that made it a customer favorite, Virgin America couldn't escape the reality that ticket price is king. For a niche player, the new world order for airlines means passenger goodies and competitive industry pricing are an almost impossible combination. Justin Bachman/Bloomberg
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Alaska Air to buy Virgin America, stripping California of its only major airline -- Alaska Air Group Inc.'s $2.6-billion purchase of Virgin America would unite no-frills Alaska Airlines, which boasts a solid financial history, with a California airline that oozes style and technology but has struggled to make a profit. The deal announced Monday was seen as a defensive move to prevent rival bidder JetBlue Airways Corp. from getting its hands on Virgin America, which is partly owned by celebrity entrepreneur Richard Branson. Samantha Masunaga/Los Angeles Times
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Alaska Airlines is buying Virgin America. Here's why fans shouldn't panic (yet). -- Richard Branson, Virgin's billionaire founder, is sad that Virgin America airlines is being sold to Alaska Airlines for $2.6 billion: "I would be lying if I didn't admit sadness that our wonderful airline is merging with another," he wrote on his blog. "There was sadly nothing I could do to stop it." And Branson isn't the only one. Virgin America is a tiny minnow in the US airline market, but it's a beloved one. Libby Nelson/Vox
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Virgin America CEO says he didn't go looking for a sale -- Virgin America CEO David Cush didn't expect to be where he is is Monday, selling the airline four months before its ninth birthday. "It certainly wasn't what we were looking for," Cush said in an interview Monday after Alaska Airlines said it will buy Virgin America for $4 billion, assuming regulatory approval. "We were focused on growing organically. We had great plans. But ultimately, you don't get to choose your path. You've got to be ready to do the right thing, even if it's not what you wanted." Ted Reed/The Street
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LAX revamp continues to add retail concessions -- Los Angeles International Airport has confirmed details of a number of pipelined duty free and travel retail projects that will bring new shopping services to passengers at the US west coast gateway into 2017. In Terminal 1, as part of stage two of Southwest Airlines' $508m renovation, Westfield continues to phase in the openings of new concessions. A total of 24 will be installed through 2017, with six new brands recently arrived. Kevin Rozario/The Travel Retail Business
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Two former bag handlers arrested in connection with cocaine-smuggling plot at LAX -- Two former baggage handlers at Los Angeles International Airport are in federal custody after being arrested Monday on suspicion of cocaine trafficking, authorities said. Adrian Ponce, 27, and Alberto Preciado Gutierrez, 26, both of South Gate, have been charged with conspiracy to distribute cocaine through LAX to the East Coast, according to a federal affidavit. Law enforcement officers in December seized roughly 2 pounds of cocaine from Preciado in a restroom in Terminal 3 of LAX, near Gate 34, authorities said. Richard Winton/Los Angeles Times Jonathan Lloyd/NBC LA Reuters CBS LA
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Luck among factors that help U.S. airports avoid terrorism -- Airport security experts last week cited a combination of robust intelligence gathering, advantageous geography and plain old-fashioned luck as key reasons why the U.S. hasn't experienced a major airport or aviation-related terrorist attack since 9/11. "What we're doing right is engaging in intelligence collection and analysis to identify people way before they get to an airport," said Richard Bloom, the director of Terrorism, Intelligence and Security Studies at Embry-Riddle Aeronautical University in Arizona. Robert Silk/Travel Weekly
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Governor Brown announces appointment -- Lucy Dunn of Coto de Caza has been reappointed to the California Transportation Commission, where she has served since 2008. Dunn has been president and chief executive officer at the Orange County Business Council since 2005. She was director at the California Department of Housing and Community Development from 2004 to 2005 and senior vice president at Hearthside Homes Inc. from 1990 to 2004 and at Signal Landmark from 1987 to 1990. Dunn was principal at the Law Offices of Lucetta Dunn from 1981 to 1987. She is a member of the Ontario International Airport Authority and the Lennar Charitable Housing Foundation Board of Directors. Dunn earned a Juris Doctor degree from the Western State College of Law. Governor Brown Press Release
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Ontario airport authority eyes Upland-based attorney -- A high-profile attorney could serve as the general counsel for the local authority when it assumes control of LA/Ontario International Airport this year. At Monday's special meeting, the Ontario International Airport Authority discussed in closed session hiring general counsel. OIAA president Alan Wapner said the move to hire its general counsel, and not rely on Ontario's lawyers, was part of the authority's plan to build a "firewall" between the two agencies. "We always envisioned the authority as being a separate entity," he said. Liset Marquez/Inland Valley Daily Bulletin
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Van Nuys Airport welcomes students for career day -- The Van Nuys Airport hosted more than 1,200 high school students from California's San Fernando Valley for a career day event in which many of the airport's largest tenants opened their doors to the visitors to spotlight aviation career opportunities. "The Sky's the Limit: Aviation Career Day" marked the eleventh year of school visits to Van Nuys Airport. The April 1 event was hosted by the airport, MP Aero, Los Angeles City Councilmember Nury Martinez (D-Council District 6), and The Valley Economic Alliance. AOPA
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Hartsfield-Jackson keeps status as world's busiest airport -- Atlanta's airport is still the world's busiest for both passengers and aircraft operations. Hartsfield-Jackson Atlanta International Airport served 101.5 million passengers last year, becoming the first airport to hit the 100 million mark in passengers, according to figures released Monday by the industry group Airports Council International. The Beijing airport remained in second place, while the airport in Dubai, United Arab Emirates, finished third. Dave Williams/Atlanta Business Chronicle ACI Press Release
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JetSuiteX to launch scheduled flights in the West; can a private jet airline be the next Southwest? -- JetSuite, which operates 19 private jets for on-demand charter and private flights for its members, is jumping into the wide chasm between private jet charter and scheduled commercial carriers. In two weeks, it launches JetSuiteX with scheduled roundtrip flights operating as a public charter. The April 19 debut features Monday through Friday service between Burbank Bob Hope Airport and Concord Buchanan Field, about 30 miles northeast of Oakland International Airport, the same distance from Fisherman's Wharf in San Francisco. The initial schedule calls for one to two flights a day in each direction, but plans are to get to three roundtrips daily. Doug Gollan/Forbes Ben Mutzabaugh/USA Today Jean Lee/San Francisco Business Times
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Airline quality: Which U.S. carrier tops the ranking? -- For the fourth year in a row, Virgin America is tops in airline quality among the biggest U.S. airlines. That's according to the 26th annual national Airline Quality Rating report, which was released Monday. The report comes the same day Alaska Airlines announced that it will buy Virgin America for $2.6 billion. Although the No. 1 airline's overall score declined slightly from 2014, Virgin America still managed to retain its top ranking for 2015. JetBlue finished second, followed by No. 3-ranked Delta Air Lines. Marnie Hunter/CNN
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Using US Government data, researches pick top airlines -- An aviation dean and a marketing professor ranked the largest 13 U.S. airlines after analyzing 2015 U.S. Department of Transportation figures for on-time flights, lost baggage, bumping passengers off flights, and complaint rates: 1. Virgin America (ranked 1 in 2014) 2. JetBlue (4) 3. Delta (3) 4. Hawaiian (2) 5. Alaska (5) 6. Southwest (6) 7. SkyWest (10) 8. United (9) 9. ExpressJet (11) 10. American (7) 11. Frontier (8) 12. Envoy Air (12) 13. Spirit (n/a). Dean Headley/Airline Quality Report/AP
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Travel boom forces Asia's airlines to seek more women pilots -- Sophia Kuo says she still hears the whispers as she walks through international airports in her EVA Airways Corp. pilot's uniform: "'Wow, we have female pilots.' 'How does she fly an airplane?' 'She must be really smart!"' More than eight decades after Amelia Earhart's solo flight across the Atlantic, women like Kuo, a 35-year-old co-pilot on the Taiwanese carrier's Boeing 747s, remain the exception in the cockpit. John Boudreau & Giang Nguyen/Bloomberg
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Fuel issue forces San Francisco-bound flight to return to Hawaii -- Over 200 United Airlines passengers on their way to San Francisco spent an extra night in Hawaii. On Sunday night, United Airlines flight 724 was forced to turn around about two hours into its flight because the aircraft didn't have enough fuel to make it to San Francisco International Airport safely. Officials classified the issue as fuel overburn, which is caused by strong headwinds. Some 264 passengers and 12 crew members were on board the flight. Derek Kravitsky/Hawaii News Now
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Mesa Airlines names John Selvaggio Chief Operating Officer -- Mesa Airlines, Inc. today announced that John Selvaggio has been promoted to the position of Senior Vice President and Chief Operating Officer. Most recently serving as the Company's Vice President of Customer Service and Station Operations, Selvaggio joined Mesa in 2014 as Vice President of Business Development and Resource Planning and was later named Vice President of DFW Operations. Mesa Airlines, Inc. Press Release
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ULCC Frontier Airlines needs to emphasis newfound stability ahead of a potential IPO -- Frontier Airlines has probably undergone more changes during the last eight to nine years than any other US airline. It emerged from Chapter 11 bankruptcy protection as a subsidiary of Republic Airways Holdings, and tried out numerous network strategies, including small city and secondary markets such as Trenton New Jersey and Wilmington, Delaware. CAPA Centre for Aviation
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Trump said to have met with top airline lobbyist -- Donald Trump reportedly met last week with a group of industry leaders that included the head of a trade organization for airlines. Nicholas Calio, president and chief executive officer of Airlines for America, was in attendance at a private meeting held by the Republican presidential front-runner last Thursday in Washington, according to The New York Times. Melanie Zanona/The Hill
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Warrant details arrests of women in pilot's alleged prostitution ring -- Search warrants show arrests made in a recent Harris County prostitution sting happened in office buildings and apartment units. Several women were charged with prostitution in relation to the alleged brothels ring run by United Airlines pilot Bruce Wallis and accused accomplice Tracie Tanner. "There was constant traffic throughout the day. Honestly, it wasn't just limited to a specific time of the day," said Christian Barsoun, who lives next door to one of the suspected prostitution apartments. Pooja Lodhia/ABC13 Houston
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Flight attendant intentionally deploys emergency slide at gate in Houston, airline says -- A United Airlines flight attendant intentionally deployed an emergency slide after the aircraft arrived at its gate in Houston, the airline says. Flight 1246 -- carrying 159 passengers and six crew -- had just taxied to its gate at Houston's Bush Intercontinental Airport when the flight attendant deployed the chute. The plane was taken out of service, inspected, and returned to service, while the attendant was removed from flying duty, according to United. ABC News Cailey Rizzo/Mashable
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House Theatre's 'United Flight 232' offers crucial life lessons from O'Hare-bound plane's wreckage -- July 19, 1989, United Airlines Flight 232, a DC-10 service, left Stapleton Airport in Denver bound for O'Hare International Airport with 296 souls on board. United 232 ended neither as badly as some nor as well as others. The number of survivors allowed the Evanston-based writer Laurence Gonzales to interview those grateful individuals for his exhaustive study of the experience of being on that DC-10 on that sunny day, when the airline was running a kids-fly-free promotion and the jet was full of children. That book, "Flight 232: A Story of Disaster and Survival," forms the basis of "United Flight 232," the new theatrical production at the House Theatre of Chicago, as adapted and directed by Vanessa Stalling. Chris Jones/Chicago Tribune BrianSumers.com
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Senate to bring FAA bill to floor shortly -- The U.S. Senate this week is hoping to bring the comprehensive FAA reauthorization bill to the floor for consideration. This action would come just a few weeks after the Senate Commerce Committee approved the bill, S.2658, the Federal Aviation Administration Reauthorization Act. The Senate bill has captured strong support from the general aviation community, which has pushed for quick action on the measure. However, airline groups have not embraced the bill, faulting it for omitting an air traffic control reform provision similar to the user-funded independent ATC measure in the House bill. Aviation International News |
Lawmakers want beefier details on California high speed rail -- California lawmakers say the state's latest plan for a $64 billion high-speed railway lacks the details that could spur additional investment in the project. Sen. Jim Beall, the Senate transportation committee chairman, said Monday that the High Speed Rail Authority must provide "more beef" in its revised business plan. The new plan calls for constructing the first 250-mile segment from rural Shafter to San Jose at a cost of nearly $21 billion. Don Thompson/AP
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