- Southwest Airlines (NYSE:LUV) could face a challenge in California if the merger between Virgin America (NASDAQ:VA) and Alaska Air Group (NYSE:ALK) moves forward.
- Alaska and Virgin each have six passenger gates at LAX compared to the ten gates controlled by Southwest. Virgin also has key gates at San Francisco, San Diego, and Palm Springs.
- The merger also combines Alaska's loyalty program with Virgin's reputation as a high-tech carrier in terms of passenger entertainment. Alaska also lands Virgin's key transcontinental routes from LAX to the East Coast.
- United Continental (NASDAQ:UAL) and American Airlines Group (NASDAQ:AAL) rank 2nd and 3rd behind Southwest in California passenger traffic.