| Journal: TWUK | Section: |
| Title: | Issue Date: 12/06/00 |
| Author: | Page Number: 72 |
| Copyright: Other |
Virgin chairman to meet EUcompetition commissioner
Up in the air? A BA/KLM merger would create Europe’s largest airline with over 500 aircraftBranson in move to stop BA/KLMtie-up
Report by PAUL NORRIS
VIRGIN Atlantic chairman Sir Richard Branson is to meet European Union competition commissioner Mario Monti this week to try to stop British Airways’ merger with KLM.Sir Richard said:”We will fight our corner to stop BA/KLM or at least try to stop the anti-competitive elements of it.”
Sir Richard claimed the merged BA/KLM and BA’s partner American Airlines would have 80% of the prime Heathrow slots.
He added that if competition authorities allowed the BA/KLM merger, his airline would look to join an alliance to gain access to the US domestic market. Branson mentioned Continental Airlines or Delta as possible partners.
EasyJet chairman Stelios Haji-Ioannou said he will join Branson at the meeting with Monti. A merger between BA and KLM would form Europe’s largest airline with more than 500 aircraft. The pair have refused to comment on the talks, which they describe as being about a “combination of their businesses”. BA is expected to buy up to 80% of KLM.
BA and KLM’s respective transatlantic partners American Airlines and Northwest Airlines have held talks on forming a US alliance. United Airlines is poised to buy US Airways, while Delta and Continental are believed to be in talks.
Speaking at the House of Commons transport sub-committee on open skies, Branson also accused the UKGovernment of considering an aviation deal with the US.
He said any such move would give BA the go-ahead for a deal with American Airlines but exclude other UK carriers from the US domestic market.