Virgin America Considers Sale? B6, DL Possible buyers..

Is the U.S. airline industry ready for more consolidation? A report published Thursday by Bloomberg revealed that Virgin America (NASDAQ: VA) is exploring a partial or full sale and has retained a financial advisor to assist it in the process. Citing "people with knowledge of the matter," the report said no decision has been made yet, and the company might ultimately elect not to proceed.
Virgin America responded to the report with a brief email statement in which it said, "as a public company, we have a policy of not commenting on any market or media speculation concerning mergers or acquisitions.''
Industry observers speculated that Jet Blue and Delta Air Lines could be potential buyers. Jet Blue's position as an alternative budget carrier is roughly similar to Virgin America's, while Delta would beef up its presence on the West Coast -- Virgin America is headquartered near San Francisco.
At the moment, however, the U.S. air travel industry is highly consolidated with only four incumbents -- American Airlines Group, Delta, United Airlines, and Southwest -- dominating the market. In the early 2000's, there were 10 such players. Regulators may well be wary of further consolidation and resist any attempt to fold Virgin America into an existing carrier. This could open the possibility of a buyer outside of the airline, or even travel, industry making an offer.
The report did not give any indication as to why Virgin America is considering a sale just now -- timing might very well have something to do with it. Some airlines are notching new highs in profitability thanks to persistently low fuel prices, usually their no. 2 cost item next to salaries. Virgin America has been part of this upward trend, posting a bottom line of almost $191 million in its most recently reported quarter, a vast improvement over the $3.9 million it posted in the same period the previous year. These strong results could help management win a higher asking price if the company ultimately pursues a deal.

Can't see DL getting approval. B6 would be a good fit, along with fleet commonality.

The all important thing that DL would like to get out of any merger buy out other application is the --2-- (gate) slots at DAL !
Thus DL may surprise everyone with an attempt to acquire all the parts and piece meal it back to other carriers to do just that.
Delta has the money which other carriers are lacking.

Update...JetBlue Airways and Alaska Air Group have both expressed interest in taking over Virgin America. According to the sources, negotiations between the airline and the two bidders are ongoing.While it is possible that the airline would call the bid off and remain independent. Sources say that if talks continue, an official deal could be announced as early as next week. So far, none of the parties involved have commented on the bids.During its eight years, Virgin America boasts quite a few achievements. In 2014, it added or announced plans for new service to a handful of new destinations. The airline began operating from Dallas Love Field (DAL) andNew York LaGuardia (LGA) last October, while it commenced operations in Honolulu (HNL)and Maui (OGG) in late 2015.
Additionally, the airline reeled in a few notable awards, taking home the designation of best airline in North America, best staff in North America and best low-cost airline in the U.S. by Skytrax 2015 World AIrline Rewards.