Virgin renews opposition to BA, AA tie-up
class="size-full wp-image-16017 alignright" title="Virgin Atlantic" src="http://news.cheapflights.co.uk/wp-content/uploads/2010/04/virgin.jpg" alt="Virgin says the tie-up is anti-competitive" width="319" height="211" />
href="http://www.cheapflights.co.uk/airlines/Virgin-Atlantic-Airways/">Virgin Atlantic has renewed its opposition to the looming tie-up between href="http://www.cheapflights.co.uk/airlines/British-Airways/">British Airways and href="http://www.cheapflights.co.uk/airlines/American-Airlines/">American Airlines, once again warning that the deal will harm transatlantic competition.
BA and AA are on the cusp of winning anti-trust immunity from both European and US regulators, paving the way for the airlines to coordinate their flying schedules across the Atlantic.
But Virgin boss Sir Richard Branson has again lashed out at competition authorities over the move, accusing Brussels of being “lazy” and “misguided” in its investigation into the proposed tie-up.
The carriers have twice before sought immunity, but their previous effort in 2002 faltered after regulators ordered them to relinquish 16 take-off and landing slots at href="http://www.cheapflights.co.uk/airports/Heathrow/">Heathrow Airport.
Their most recent attempt at consolidation received a major boost in February, when the US Department of Transportation said leasing just a handful of slots would be sufficient.
At the time Sir Richard described that decision as a “kick in the teeth” for the travelling public. Reaffirming his opposition to the deal, he today turned his wrath on Brussels.
“I remain extremely concerned that consumers are not being put first in the European Commission’s decision-making process,” Sir Richard commented. “No evidence of consumer benefits has been put forward. The Commission needs to throw out the commitments proposed by BA and AA.”
Speaking later to The Financial Times, he continued: “The way the Commission is currently going about it is fundamentally flawed and misguided, and to be honest it’s rather a lazy approach.”
Virgin’s main objection to the alliance is that BA and AA would between them share 47 per cent of Heathrow slots, which according to Sir Richard will result in higher fares for passengers.
But BA says competition will still be rife on transatlantic routes, with more carriers than ever before currently operating US-bound flights from Heathrow due to the 2002 Open Skies treaty.
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