Reports: Alaska Air close to deal to buy Virgin America

Alaska Airlines is close to a deal to buy San Francisco-based Virgin America, according to multiple reports out Saturday.

The Wall Street Journal was among the first with the news, writing Alaska Air “has emerged as the likely winner of an auction for Virgin America ... after beating a rival bid by JetBlue Airways.” Alaska Airlines would pay about $2 billion for the acquisition.

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The Journal’s report did not include named sources, saying only that the information came from “people familiar with the situation.”

Still, the Journal suggests the tie-up is far from certain. “There is no guarantee Alaska Air ultimately will clinch the deal, but if it does, an announcement could come Monday,” the newspaper writes in its report.

The New York Times and Reuters were among other outlets following with similar reports, though none included named sources.

Echoing the Journal’s information, the Times says its sources “cautioned that details were still being negotiated and the talks could fall apart.”

Reuters adds “Asian airlines have also expressed interest in buying Virgin America, although they would have to partner with a U.S. bidder under foreign ownership rules governing U.S. airlines.”

Should the Alaska Air's deal go through and pass subsequent regulatory hurdles, Alaska Airlines would jump past JetBlue to become the USA’s fifth-biggest carrier based on passenger traffic, according to the Journal.

Stay tuned …

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