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Virgin plans to challenge BA-American Airlines deal

Virgin plans to challenge BA-American Airlines deal Reports claim that Virgin Atlantic is planning to launch a £3 million campaign of advertising and lobbying to challenge the proposed link-up between American Airlines and British Airways.

It is expected that BA will imminently lodge an antitrust immunity application with the US Department of Transportation to establish a profit share venture with the American carrier.


Sir Richard Branson's Virgin Atlantic reportedly believes that the partnership would give the two carriers a stranglehold on US flights from Heathrow which would be "dangerous for consumers".

According to Steve Ridgway, Virgin chief executive, the joint venture would control 49 per cent of peak time landing slots from Heathrow Airport.

Equally, the two airlines would also control 62 per cent of all passenger air travel to the US from Britain's largest airport.

Mr Ridgway told the Telegraph that "it is going to be difficult for BA and American to defend the indefensible".

"They will have such a dominant share at Heathrow and JFK that there is no justification for this being in the consumer interest."


The Telegraph reports a source close to BA responding that "there's nothing to stop Virgin or any other airline competing on routes if they believe there is not enough competition".

"If we submit this application and if it's approved, there will be nine airlines operating across the Atlantic and Virgin will be the only one without antitrust immunity."

"They have got to recognise that the whole competitive climate has changed instead of just making the same arguments they did eight years ago," he added.

The BA-AA partnership has previously been attempted twice, including most recently in 2002 when the deal fell through due to regulator demands that BA give up certain Heathrow landing slots.


Airport News posted on 11 August 2008

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