NEW YORK (AP) – Virgin America has loyal passengers who love the airline's cool vibe even if its size and schedule are too limited to meet all their travel needs.

But it appears to be going away.

Alaska Airlines' parent company announced Monday that it will pay $2.6 billion to buy the Richard Branson-inspired, California-based carrier. Alaska hopes to become travelers' preferred airline on the West Coast and a tougher competitor to giants American, Delta and United on transcontinental routes.

The deal would vault Alaska over JetBlue the losing bidder for Virgin America to become the natio...