Monday, April 4, 2016

JetBlue, Neeleman of loses connection for Virgin America – Mad Money

JetBlue, the US airline founded by David Neeleman in 2000, lost the race to buy Virgin America to Alaska Air, in a transaction valued at 2.6 billion dollars (2.28 billion euros), according to a statement published on Monday.

the Alaska Air becomes, with this operation, the fifth largest airline in the United States, with 1,200 trips per day, ahead of the company Neeleman founded by one of the members of the Atlantic Gateway consortium. The purchase, which should be completed by the end of this year, now pending the approval of regulators.

Last week was advanced that Richard Branson and Cyrus Capital investment fund, which hold the majority stake in Virgin America would be in negotiations to sell the position in the company low-cost founded in 2007 and is independent of Virgin Atlantic, founded in 1984 in the UK, also by Branson.

the race for Virgin America have led the Alaska Air and JetBlue to increase the price in the past, with Alaska Air to bring the best to have more capital available to complete the operation, said a source close to the process to the Wall Street Journal .

Branson promised to revolutionize the market with your company. And the unique interior and leather seats to become real. However profits continued. In 2014 the company made a spread on the stock exchange and, through an IPO grossed over 300 million dollars.

There have arrived. Late last year, David Cush, the company’s CEO confirmed that the smaller companies are being strangled by large groups such as American Airlines, Delta and United, earning wide market share, leaving little room for companies like it leads.

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