SEATTLE— Alaska Airlines (AS) has won a court order allowing it to subpoena Delta Air Lines (DL) in a major legal dispute with Virgin Group. The U.S. carrier seeks internal Delta–Virgin Atlantic records to strengthen its case over royalty payments tied to the defunct Virgin America brand.
A federal judge in Atlanta (ATL) approved Alaska’s request on October 30, giving it access to documents and testimony that could help it recover tens of millions of dollars in damages in the United Kingdom, where the core branding lawsuit continues.
Alaska Airlines’ New Legal Strategy Against Virgin
Alaska Airlines is not suing Delta for damages but believes Delta holds crucial evidence. The subpoena targets communications, deposition testimony, and joint venture materials between Delta and Virgin Atlantic.
Alaska’s attorneys say these could prove that Virgin breached its licensing deal by allowing the Virgin name to be used in marketing Delta’s U.S. domestic flights.
This dispute began in 2014 when Alaska acquired Virgin America in a multi-million-dollar deal that included a long-term license to use the Virgin brand. Initially, Alaska planned to keep Virgin America operating under its signature branding.
But by 2019, Virgin America had been fully absorbed into Alaska’s operations, and its brand retired. Alaska argued that it no longer owed Virgin Group royalties for a trademark it had stopped using.
Virgin Group disagreed, claiming Alaska remained bound to pay at least $10 million per year in royalties, whether or not the brand was active. British courts have repeatedly sided with Virgin, leaving Alaska with limited options to challenge the ruling.
Evidence Alaska Hopes to Find
During ongoing proceedings, Alaska’s legal team discovered that Virgin Atlantic had marketed Delta’s U.S. domestic flights to its “Flying Club” members using Virgin branding. These weren’t codeshare flights carrying a Virgin designation but regular Delta flights redeemable with Virgin loyalty points.
Alaska argues this activity violates its exclusive right to use the Virgin trademark for U.S. domestic airline services. According to the airline, this breach effectively terminated the agreement and entitles Alaska to compensation.
A spokesperson for Alaska Airlines said:
This discovery will provide additional evidence of Virgin’s scheme and will help illustrate how Virgin’s conduct benefited both Virgin and Delta at Alaska’s expense and in violation of the trademark license agreement.”
The airline hopes Delta’s internal records will show that Virgin’s collaboration with Delta undermined its trademark rights.
A Complicated Relationship Between Rivals
Although Delta isn’t the target of Alaska’s lawsuit, their relationship has been strained for years.
The two once shared a close partnership, but after Alaska acquired Virgin America, Delta ended its cooperation and aggressively pursued Alaska’s key frequent flyers.
Now, Delta’s involvement as a subpoenaed party adds another layer to an already tense rivalry. The outcome of the U.K. case could determine whether Alaska recovers millions in damages or continues to pay royalties for a brand it believes no longer applies.
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