Is Virgin America up for sale?
Virgin America recently posted strong financial results for FY 2015, with record annual income and a year-over-year net income increase of 139 percent. But while 2015 was a successful year for the airline, it has been an uphill battle and Richard Branson may soon cut this branch of his business loose for another parent company to foster its further successes. According to reports this week, Virgin America is considering takeover bids from multiple larger carriers.
Several sources have identified some of the key players vying to acquire Virgin America. Bloomberg Business reports that JetBlue and Delta Air Lines have both expressed interest in folding Virgin America into their portfolios, while private equity groups are also looking into the matter. The Wall Street Journal adds that Virgin America is also expecting a takeover bid from Alaska Air Group by the end of the week.
It would be a smart move for any of these airlines to take on Virgin America, bolstering their transcontinental offerings while also absorbing some serious competition. Meanwhile Conde Nast Traveler suggests that private investors, who make up the majority of Virgin America’s shareholders, are growing eager to cash out and would welcome a solid offer.
All businesses involved are staying silent for now. But if interest is strong enough and a deal develops, we should be hearing something more concrete very soon.