Ben Mutzabaugh

USA TODAY

Alaska Airlines could be in for a public spat with Richard Branson over its decision to end the Virgin America name – and the millions of dollars a year currently paid to license that brand.

Alaska Airlines completed its acquisition of Virgin America late last year, kicking off a merger that will make the combined carrier the fifth-biggest in the United States. There had been some thought that Alaska Airlines might try to retain the Virgin America brand – at least for certain flights or services.

But Alaska Air officially nixed that idea last week, saying the Virgin America name and logo would fall off the company’s fights. Alaska Air said some of Virgin America's perks and stylistic touches would be incorporated, but the brand itself would disappear – "likely" by the end of 2019.

TODAY IN THE SKY: Alaska Air begins merger with Virgin America, promises 'more to love' | Virgin Atlantic's Richard Branson bashes Alaska Airlines at Seattle launch (story continues below)

The decision to end the Virgin America brand – which has cultivated a loyal following – has drawn criticism from Sir Richard Branson, the British tycoon who help get Virgin America off the ground back in 2007.

Branson’s latest public rebuke of Alaska Air came in Alaska’s hometown of Seattle, where Branson was helping celebrate the launch of service from London on his British carrier, Virgin Atlantic. Perhaps not coincidentally, Branson’s Virgin Atlantic is now 49% owned by Delta – a rival that has become Alaska Airlines’ fiercest in recent years.

“It just seems such a waste,” Branson said Monday. “I wonder what it was that Alaska bought and why did they bother?”

USA TODAY: Delta buys 49% of Virgin Atlantic (2012) | 'Frenemies' no more? Delta, Alaska Air to terminate partnership

Branson also told reporters that Alaska has to continue paying royalties on the Virgin America brand under the licensing deal until 2040, “despite what you might have been told.”

Officials at Alaska Air, however, say that’s not quite right.

Kyle Levine, Alaska's general counsel, told The Associated Press on Wednesday that Branson is correct only about the length of the contract.

"What he didn't mention is there are lots of ways out of the contract," Levine said. "No, we do not need to keep paying for a brand that we are not using."

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Still, Branson’s U.K.-based Virgin Group doubled down when asked again about the licensing agreement by AP.

The company said in a written statement that Alaska has "clear obligations" with the licensing agreement it inherited in its Virgin America acquisition. That, the Virgin Group says, includes payments for another 23 years.

How much is the licensing deal valued at? AP writes Virgin America "paid $7.7 million in licensing fees to a Branson-controlled company in its last full year before the Alaska takeover. But that was before a 40% rate hike that likely pushed the fee to more than $10 million."

Stay tuned ...

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