In April it was first announced that Alaska would be taking over Virgin America in a ~$2.6 billion deal.
Unfortunately there have been rolling delays in the closing of the deal. Initially the deadline for the merger to close was October 17, 2016. However, it looks like the Department of Justice isn’t approving the deal without some concessions, which are causing big delays.
Rumor had it that the DOJ was asking Alaska to cut codesharing ties with either American and/or Delta, to ensure that sufficient competition remains. On top of that, the DOJ is allegedly also asking the new airline to give up several gates in both Los Angeles and San Francisco. Combined, these changes could cost Alaska hundreds of millions of dollars in revenue per year, so you have to wonder how they’re feeling about the deal now.