ALASKA AIRLINE,IS SET TO BUY VIRGIN AMERICAN AIRLINE.

                Alaska Air Group Inc {ALK.N} said today monday that it would buy Virgin America Inc {VA.O} for $2.6 billion to become tthe top carrier on the U.S West Coast and compete more effectively with larger airlines.The deal appears to end what Alaska Air Chief Executive Officer Brad Tilden called a hard fought competition to purchase Virgin America.JetBlue Airways Corp {JBLU.O} had also made an offer for the offshoot of billionaire Richard Branson's London based Virgin Group,which had become famous for its mood lighting and media rich entertainment on flights.According to Deutsche Bank analyst Michael Linenberg wrote in a recent research note that,The deal would create the fifth largest U.S airline after a decade of mergers that have shrunk the industry to a handful of companies.The top four control more than 80 percent of the U.S travel market.Virgin America accounts for about 1.5 percent of U.S domestic flight capacity,while Alaska Air and its Horizon Air subsidiary account for 5 percent.Shares of Alaska Air were down 4.6 percent at $78.22 in morning trading,while Virgin America jumped 40 percent to $54.47.That was still below the $57 percent share bid,which represents a premium of about 86 percent from Virgin America's stock price before reports in March that the airline was considering a sale.More photos below.