News broke yesterday that Virgin America had received a takeover offer and was shopping itself to potential buyers.
We can eliminate United as the acquirer — the Justice Department would pretty quickly shut down such a degree of consolidation in San Francisco where United has a hub and Virgin America is based.
I suggested it was conceivable that JetBlue, a more boutique-style carrier focused on New York, could bulk up on the West Coast by aligning itself with Virgin America. I’m not predicting it but it would increase competition overall rather than reducing it. And it would presumably pass muster with anti-trust review.