Alaska Airlines (AS, Seattle Tacoma International) parent, Alaska Air Group, Inc., and Virgin America (San Francisco) have announced that each carrier has agreed with the Antitrust Division of the US Department of Justice (DOJ) to extend the date of their timing agreement.

In a joint statement issued Monday, September 26, the parties said they would not consummate the acquisition prior to October 17, unless the DOJ provides written concurrence to close within a shorter period.

The parties previously agreed to not close the merger before September 30. The extension thus gives the DOJ additional time to review the proposed merger amid competition concerns.

"Given the airlines' largely complementary networks, the relative size of this merger compared to past airline combinations, and both Virgin America and Alaska's emphasis on customer service, we are also confident the DOJ will agree this merger will provide consumers more choices and lower fares while allowing for more robust competition against the Big Four airlines (American Airlines, United Airlines, Delta Air Lines, and Southwest Airlines), which control 84% of the domestic market," they said.

The two airlines said they are confident they will address any concerns and obtain regulatory approval to complete their USD4 billion merger.