New York - Alaska Air Group Inc. is buying Virgin America in a deal worth more than $2 billion, combining their West Coast presence and reigniting the debate over airline consolidation.

Alaska Airlines will pay $57 in cash per Virgin America share. That’s a 47 percent premium to its Friday closing price of $38.90. Virgin’s shares rose more than 39 percent in premarket trading.

The companies put the transaction’s value at about $4 billion, including debt and capitalized aircraft operating leases.

Virgin America got off the ground with support from minority owner Richard Branson and began flying in 2007. It went public in November 2014 with an initial stock offering priced at $23 per share. Virgin, which turned profitable — barely — in 2013, earned a record $340.5 million last year. The airline’s profits came from slowing down its rapid growth and from the help of low fuel prices. Virgin was going to be forced to restart that growth this year as it took delivery of new jets. New routes often start at a loss.... Read More: VIN