Virgin America brand 'retired' by new owner Alaska Airlines - Sir Richard laments its loss

Sir Richard suggests the decision to erase the brand is 'baffling'

Grounded: Sir Richard Branson has expressed surprise at the erasure of the Virgin America brand (Virgin America)

Last year Alaska Airlines paid $2.6bn (over £2bn) for Virgin America. When the deal was sealed in December, the chief executive of the Alaska Air Group, Brad Tilden, said: “Alaska Airlines and Virgin America are different airlines, but we believe different works – and we're confident fliers will agree.

”Together, we'll offer more flights, with low fares, more rewards and more for customers to love, as we continue to offer a distinctive travel experience. The two airlines may look different, but our core customer and employee focus is very much the same.”

Now, Alaska Airlines - which is about four times the scale of Virgin America - has decided that the two airlines will look identical. Sir Richard Branson’s vision to transform flying in the US has been “retired”.

“After careful consideration, the combined company will adopt Alaska's name and logo, retiring the Virgin America name likely sometime in 2019,” said a company statement this week.

Sangita Woerner, Alaska Airlines' vice president of marketing, said:“While the Virgin America name is beloved to many, we concluded that to be successful on the West Coast we had to do so under one name - for consistency and efficiency, and to allow us to continue to deliver low fares.”

The Virgin founder did not hide his sadness at the news. In a blog, he wrote:

“Many years ago, I shed tears over selling my beloved Virgin Records for $1 billion, which we needed to fight off British Airways’ Dirty Tricks campaign to try to put Virgin Atlantic out of business. Many tears are shed today, this time over Alaska Airlines’ decision to buy and now retire Virgin America.”

Addressing his Virgin America “Teammates”, Sir Richard said: “You proved it is possible to run a business with a strategy that does not rely on low fares and a dominant position alone: you attracted premium flyers with a fun and beautiful guest experience.

“You created the world’s most loved safety video. You proved that it is possible to create a business with a terrific culture and a brand that people love.

“I'm told some people at Virgin America are calling today ‘the day the music died’. It is a sad (and some would say baffling) day. But I'd like to assure them that the music never dies.”

Alaska Airlines has become the fifth-biggest airline in the US, after American, Delta, Southwest and United.