Jurisdiction(s):
United Kingdom

High Court (England and Wales) confirms Alaska Airlines owes US$30m minimum royalties for Virgin America brand, payable irrespective of use; payment construed as consideration for bundle of rights

Published on: 09 October 2025

Published by a Law360 reporter

Legal News

Article summary

On 3 October 2025, the High Court ruled that Alaska Airlines must remit a flat fee to Virgin Aviation TM Ltd, as this sum constituted the minimum amount due for the right to use the Virgin America branding, now defunct. The court also held that Alaska’s argument was a fundamental mischaracterisation of the minimum royalties, dismissing the claim that a separate payment obligation had expired once Virgin was said to have breached the licensing agreement. As set out in the judgment, the supposed breach occurred when Virgin operated a customer loyalty programme that let travellers redeem points for domestic flights operated by Delta Air Lines. In 2022, the US carrier sued Virgin, alleging the British conglomerate had violated a deal to deploy the Virgin America branding on some of its domestic US services, because the trademarks were also licensed to its subsidiary, Virgin Atlantic. Alaska Airlines inherited the branding after acquiring Virgin America. Virgin Atlantic has used the trademarks within a ‘partner loyalty programme’ in collaboration with Delta Air Lines...

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