Blomberg reports that both Alaska Air Group (ALK) and JetBlue Airways (JBLU) have made bids for Virgin America (VA). The news is good for shareholders suggesting a bidding war could take place. The stock is already up from sub $30 to nearly $38 now, but it only places Virgin America back to the 2015 peak. A deal makes since with JetBlue Airways considering the similar fleets and the additional West Coast presence. Alaska Air fits more as a defensive move with both Virgin America and JetBlue long-term threats. Not to mention, Alaska uses Boeing's versus the Airbus fleet operated by Virgin America. Look for a bid in the mid-$40s with only a multiple of 12x EPS estimates. The size of Virgin Airlines at around $2 billion shouldn't be hard for either airline to swallow though getting DOJ approval is a big concern in the sector if the airlines can't prove that this deal adds competition. Disclosure: Long VA