Alaska Airlines on Wednesday settled a private antitrust lawsuit, removing the final roadblock to its $2.6 billion acquisition of Virgin America.
The settlement agreement was announced one day after the Antitrust Division of the United States Department of Justice approved the merger, creating the fifth-largest airline in the U.S.
Terms of the settlement were not disclosed.
The deal was with 42 plaintiffs, who brought the suit in federal court in San Francisco, hoping to squash the merger after calling it "substantial and foreboding," as such mergers increase costs for airline passengers and diminish the number of seats available.
[READMORE]READ MORE: Alaska Airlines Names Executives To Run Virgin America[/READMORE]
Alaska Airlines said a day earlier it believed the plaintiffs' claims were without merit and planned to defend its acquisition of Virgin America accordingly.
"We remain confident in the merits of this transaction," Chairman-CEO Brad Tilden said on Tuesday "The expanded West Coast presence and larger customer base create an enhanced platform for growth, which is good for investors, employees and especially customers - who benefit from more choices, increased competition and low fares."
The settlement agreement avoids a trial, which was scheduled to begin next week, and avoids the specter of 'anything can happen in a court case.'
Instead, the merger will now proceed. Alaska Airlines said it hopes to complete the transaction shortly.
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