ALK Alaska Air Group Inc

Alaska Air Group Inc., which in early April announced a $2.6 billion offer to acquire Virgin America Inc., said it and its target have received a request for more information on the proposed transaction from the U.S. Justice Department.

The two carriers said the so-called "second request," is a "standard part" of antitrust regulators' review process and said they are cooperating fully with the Justice Department. The request for more information extends the period that the parties must wait to close the transaction, until 30 days after they have complied with the request or if the waiting period is otherwise terminated by the government.

Alaska Air Group, parent of Alaska Airlines, and Virgin America said they would respond "promptly" and are "confident" they will obtain regulatory approval to complete their transaction no later than Jan. 1, 2017.

Eleven days after they announced the planned deal, the two submitted paperwork outlining the transaction to the government, as required by the Hart-Scott-Rodino Antitrust Improvement Act. This gives the Justice Department time to review the proposed transaction ahead of time and determine whether it is anticompetitive.

The waiting period normally is 30 days before the parties can close the deal, which would have been in the middle of May. But by asking for a second request, the Justice Department extends the review period. If it believes after the additional information is provided that the transaction may violate antitrust laws, it can seek an injunction in federal court to prohibit consummation of the deal. Or it could drop its suit if the parties agreed to make sufficient concessions to preserve completion.

If Alaska succeeds, it would become the fifth-largest U.S. airline, vaulting ahead of JetBlue Airways Corp., which also participating in the bidding for Virgin America. But the enlarged Alaska would be a very small No. 5, as the nation's four largest carriers, all bolstered in size through mergers in recent years, control more than 80% of domestic capacity.

Directors of Alaska Air Group and Virgin America already have approved the combination, which now requires a vote by Virgin America shareholders.

Write to Susan Carey at susan.carey@wsj.com

(END) Dow Jones Newswires

May 16, 2016 19:25 ET (23:25 GMT)

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