US: Virgin America in talks to sell itself to JetBlue

Virgin America airlines could soon be going the way of People Express and TWA. The low-cost airline has put itself up for sale and may soon be taken over by JetBlue Airways or Alaska Airlines, according to reports.

Offers from the two companies are due by the end of the week and a preferred buyer couldemerge as early as this week, though a final deal would take longer to complete, The Wall Street Journal reported, citing unnamed sources.

Virgin America, the brainchild of British billionaire Richard Branson, has been operating since 2007, but has only begun making money in the last two years. Based in Burlingame, California, near San Francisco International Airport, the budget airline has focused on flying between the East and West coasts, and recently expanded into Denver and Dallas, and begun flights to Hawaii.

Acquiring Virgin America would give JetBlue a larger presence on the West Coast, including Los Angeles and San Francisco, and complement JetBlue’s hub at New York’s John F. Kennedy International Airport and its network along the East Coast, according to Bloomberg, which first reported news of a possible merger deal Monday. The purchase would also eliminate a competitor on lucrative cross-country routes.

Full content: Bloomberg

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