Alaska Air Group Narrows 1Q Loss

Some analysts say Alaska Airlines and United Airlines would stand to gain if Virgin America, which flies mainly transcontinental routes, were to cease operations temporarily or permanently.

Burlingame, Calif.-based Virgin America, which launched in 2007, has insisted it is in full compliance with U.S. law and that it is a U.S.-controlled and operated airline. British billionaire Richard Branson's Virgin Group is a minority holder in Virgin America.

Alaska Air Group has said Alaska Airlines isn't questioning Virgin America's ownership status because of its rivalry with the carrier, but rather it believes there needs to be transparency and it wants the DOT to ensure all airlines are held to the same standard of compliance with U.S. law.

But Virgin America's chief executive has said he believes the dispute has everything to do with competition. Alaska Airlines and Virgin America compete largely in Seattle, San Francisco and Los Angeles.

To date, the DOT has not taken any action on Alaska Airlines' petition.

Together, Alaska Airlines and Horizon Air serve more than 90 cities through their network in Alaska, Hawaii, the continental U.S., Canada and Mexico. Last November, Alaska Air Group signed an expanded marketing alliance with Atlanta-based Delta Air Lines Inc., the world's biggest airline operator.