AS to buy VX in $2.6bn deal

Discussion in 'Alaska Airlines | Mileage Plan' started by Wandering Aramean, Apr 4, 2016.  |  Print Topic

  1. Wandering Aramean
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    Wandering Aramean Gold Member

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    Looks like AS won the bidding for Virgin America, paying $57/share or $2.6bn in cash.

    MileagePlan will be the surviving loyalty program and Alaska Airlines the surviving brand, though they said they might try to find a way to use the Virgin branding down the line; I'm betting against that given the cost of that licensing.

    Also, I really don't see the synergy.
     
  2. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Right, I think the "synergy" is actually the prevented synergy of a B6/VX merger.
     
  3. WilliamQ

    WilliamQ Gold Member

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    Wonder how this will affect the already shaky relationship between Alaska and Delta.
     
  4. pneiswender

    pneiswender New Member

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    Any thoughts on how the mileage programs will merge and the conversion ration? Right now you can transfer Amex reward points to Virgin Elevate with a 25% bonus so it seems it might be an opportune time to pick up some bonus miles that will get rolled into Alaska (which isn't part of the Amex program).
     
  5. eponymous_coward
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    eponymous_coward Gold Member

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    Nothing that isn't mindless speculation.

    I, for one, would not be making redemption decisions where you are swapping out a flexible currency like AMEX MR for an inflexible one like VX Elevate, that are predicated on things you have no idea about (what the conversion to AS MP will be, when it will happen, whether or not AS will devalue the MP program significantly in the interim).

    In fact, I think AS MP will be almost certainly devalued in time to come; they have a significant arbitrage on AA international premium redemptions to Europe and Asia, as well as CX redemptions, compared to AA and CX. People are noticing and stocking up on the miles, even after the EK debacle. Water will find its own level at some point, probably in the form of mileage requirements spiking. For a while AS had disparate rates for DL redemptions as well. Not so much any longer.
     
    Last edited: Oct 10, 2016
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  6. eponymous_coward
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    eponymous_coward Gold Member

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  7. iolaire
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    iolaire Gold Member

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    I for one transferred about 40k Citi points to AX so they go to AK. I think they will still have some value and are worth more combined with my AK balance then say 40k AirFrance miles. (This is after transferring the majority to AF for an EU coach award.)
     
  8. eponymous_coward
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    eponymous_coward Gold Member

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    The state is AK, the airline is AS. ;)

    (Unless you meant AirAsia, which has the IATA designation of AK.)

    Even if 40k VX transfers 1->1 you still probably have some decent redemption options. JL Y+ is 40-45k to Asia one way, CX Y+ is 35k, both include a stopover in either TYO (JL) or HKG (CX).
     
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  9. iolaire
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    iolaire Gold Member

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    Citi is 2-1 VX so it might just be 20K AS (AK), so if its 1-1 I'll need some of my AS balance to do anything.
     

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