VIRGIN America Inc (VA.O) has received takeover bids from JetBlue Airways Corp (JBLU.O) and Alaska Air Group Inc (ALK.N) as the US budget airline backed by British billionaire Sir Richard Branson explores a sale, a person familiar with the matter said Monday.
Asian airlines have also expressed interest in buying Virgin America, although they would have to partner with a US bidder under foreign ownership rules governing US airlines.
The source asked not to be identified because the sale process is confidential.
JetBlue, Alaska Air and Burlingame, California-based Virgin America declined to comment.
In the past year, Virgin America has faced steep declines in unit revenue, or sales relative to flight capacity, as bigger rivals have added seats to gain share and take advantage of lower fuel costs that make it cheaper to operate flights. A tie-up with another airline could give Virgin America more flights that would help it compete.
Analysts said a deal could make sense particularly for New York-based JetBlue, which has room to grow on the US West Coast. Both carriers fly the same type of aircraft, which means JetBlue would not need to train pilots or maintenance crew on how to operate Virgin America’s planes.
