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JetBlue Airways mulling Virgin America takeover

JetBlue Airways is planning to acquire Virgin America, and talks are currently underway. The airline’s move is aimed at more than doubling its passenger traffic and gain major foothold in the U.S. West Coast.

Media reports said that JetBlue Airways is currently in full growth mode and aims to expand its domestic and international network further. The airline has launched several new routes and looking forward to resuming scheduled flights services to Cuba.

According to the reports, JetBlue Airways has pitched in and is leading the race to purchase Virgin America. This significant move is being seen as the airline’s biggest ever till date. If the airline finally succeeds in acquiring Virgin America then it would gain major access to the U.S. West Coast and become a dominant player here.

The airline’s entry to the U.S. West Coast also means that it will be able to launch new routes and become a proud owner of a fleet of 60 Airbus aircrafts owned by Virgin America with an average 6.3 years of age, which by any airline standard is said to be quite new.

Both JetBlue Airways and Virgin America are presently serving similar destinations. Moreover, JetBlue Airways has a codeshare agreement with Hawaiian Airlines, and the purchase of Virgin America would enable JetBlue Airways gaining direct and wider presence in the flourishing Hawaiian market.

Travel experts say that the biggest goal that JetBlue Airways has set for itself in acquiring Virgin America is solely to strengthened its market position in the U.S. West Coast, going beyond the Los Angeles area. By purchasing Virgin America, the position of JetBlue Airways would be bolstered in Asia by virtue of gaining prestigious access to San Francisco International Airport, which is considered to be an important hub for connections in Asian destinations. Virgin America is owned by British entrepreneur Richard Branson and is a subsidiary of Virgin Group. Apart from JetBlue Airways, another U.S. based carrier Alaska Air is also in the race to acquire Virgin America.

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