Alaska Airlines has lost a lengthy legal battle against the Virgin Group, which is now costing the company dearly. The court ruled that Alaska Airlines must pay at least $8 million in licensing fees to the Virgin Group annually until 2039, regardless of whether the Virgin brand is actually used.

The conflict dates back to the merger of Virgin America with Alaska Airlines in 2016, which transferred all rights and obligations. However, Alaska Airlines stopped using the Virgin name in 2019, which led to a suspension of royalty payments. The Virgin Group successfully argued in court that the license agreement was valid until 2039, which obligated Alaska Airlines to pay the set fees.

Justice Stephen Phillips upheld the Supreme Court's ruling that Alaska Airlines must continue to pay the flat fee for use of the Virgin name. The decision is likely to have a significant financial impact on Alaska Airlines, as the company will now have to shell out millions in licensing fees annually, even if it is not actively using the name.

A spokesperson for the Virgin Group commented positively on the ruling: “The court's decision confirms our long-term rights to the Virgin brand and underlines its high value.” Alaska Airlines has not yet responded to requests for comment.