Alaska Air sees acquisition of Virgin America as key to US West Coast

New York

IN agreeing to buy Virgin America for US$2.6 billion, Alaska Air Group is betting that the airline industry is so consolidated after years of mergers that what it needs is another takeover.

The acquisition of Virgin America, the sleek but embattled young airline that sought to make flying across the United States stylish, would propel Alaska Airlines into the top five American carriers.

The deal, announced on Monday, would also prove especially helpful in giving the older airline valuable space at major California airports and lucrative transcontinental routes.

At the same time, Alaska Air must now be careful in how it integ…