JETS ETF CEO: JetBlue-Hawaiian Merger Could Be Next After Alaska Air's Virgin America Buyout
by Nicholas Donato4 hours ago
AAL ALK DAL
After calling for a Virgin America Inc (NASDAQ: VA) buyout in the mid $50 range, U.S. Global JETS ETF CEO Frank Holmes spoke with Benzinga about the Alaska Air Group, Inc. (NYSE: ALK) deal.
Alaska Air confirmed it's buying Virgin America for $57 per share on Monday morning.
Holmes said this move was a way for Alaska Air to get into the East Coast route market; here, they can compete with other airlines such as Delta Air Lines, Inc. (NYSE: DAL) and American Airlines Group Inc (NASDAQ: AAL) for traffic on this coast.
Holmes continued, adding that he though Alaska Air would be a good culture fit for Virgin America, where both airliners focus on customer experience. In addition to adding new flights, Holmes said he believes Alaska Air may have also been fueled to buying Virgin for asset protection over its West Coast flight market.
When asked if he saw further consolidation in the industry, Holmes said a deal between JetBlue Airways Corporation (NASDAQ: JBLU) and Hawaiian Holdings, Inc. (NASDAQ: HA) would make sense. Both airliners compete for East and West Coast traffic.
JetBlue shares fell 4 percent on Monday, while Hawaiian rose 3.5 percent.
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