National Post

Alaska Airlines to retire Virgin name

- David Koenig

DALLAS• After months of teasing, Alaska Airlines has bad news for loyal customers of Virgin America — their airline’s name is being dumped.

Alaska will retire the Virgin brand, probably in 2019, adding that name to a list including Continenta­l and US Airways that disappeare­d in the past decade.

Launching a new airline takes lots of money and patience — one reason that Virgin America’s debut in 2007 was so eye- catching. The other was its hip vibe including mood lighting and young, attractive flight attendants.

So when Alaska announced last year that it was buying Virgin for US$2.6 bil- lion, it was like asking Virgin customers to trade in their sports car for a minivan — a solid, reliable ride, but not exciting.

Alaska Airlines knew it, too. Last June, CEO Brad Tilden held out hope to Virgin fans that he might keep the Virgin America brand, and run it as a separate airline. Tilden said he believed in “the power of the Virgin America brand, and we don’t want to lose all that loyalty.”

But running an airline within an airline adds complexity and costs. Alaska flies only Boeing jets; Virgin uses Airbus. Sometimes a split personalit­y works in the airline business, sometimes it doesn’t. So Alaska’s decision came as no surprise to people in the business.

Still, many will be saddened, particular­ly in Virgin’s home market of California.

Richard Branson, the British billionair­e whose backing and minority ownership stake made the airline possible, posted a letter on Virgin’s website bemoaning that Alaska couldn’t find a place for Virgin.

“With a lot of things in life, there is a point where we have to let go and appreciate the fact that we had this ride at all,” he wrote.

Seattle-based Alaska won a bidding war with JetBlue Airways to buy Virgin. The deal will greatly expand Alaska’s strength in California. Alaska recently announced it will greatly expand routes from the San Francisco Bay Area.

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