Skift Take
First let's get the record straight, we were totally wrong about Delta wanting to add Virgin America as a boutique property to its collection. In the end, Alaska Airlines got it and we’re just not sure what Alaska will do with it; it would seem Alaska isn’t sure either.
Alaska's acquisition of Virgin America turned the U.S. airline market inside out, puzzling analysts, brand managers, even owners.
So what is to be made of a Virgin America merged into an Alaska Airlines?
A lot of the talk has been about routes and fleets and what makes sense and doesn't make sense about these two airline models merging together. Some people worried that it's chocolate and peanut butter, with either airplane maker as chocolate or peanut butter depending on the AvGeek you ask — but that's neither the point nor the problem.
The real problem of the two aircraft types would come of a full absorption of Virgin America into Alaska Airlines, because the crew are trained to fly different aircraft, but even that, some experts suggest, could be overcome.
"It's not so much of a problem," travel industry analyst Henry Harteveldt said. "It's more of a challenge. When you think about it, it's a relatively straightforward integration. It should not be as complex as US Airways and American Airlines. It's two smaller carriers, not as complex as United and Continental."
More importantly, though there are fleet differences, route gains are a significant benefit.
Industry analyst Addison Schonland, who wrote comprehensive and insightful reviews of the practical realities of the acquisition and the potential benefits and challenges to Alaska of this acquisition, does not believe that, in the end, this deal bodes well for U.S. air travellers.
"For passengers there isn't anything big in the offering," he said. "Consolidation is not in passengers' interests. The airlines will gain economies of scale. Alaska gets to build more of a West Coast fortress. There will be less competition and fares will, inevitably, go higher."
The Brand Hit
Chris Nurko, Global Chairman, Futurebrand
