News

Virgin Atlantic to unleash campaign against BA and American Airlines

Virgin Atlantic is poised to unleash a £3-million advertising campaign against a tie up between British Airways and American Airlines

BA and American planned to present their case for anti-trust immunity to US authorities this week. Iberia is keen to join the pair through a merger with BA, on which talks continue.

Anti-trust immunity would allow the airlines to combine schedules and co-operate on pricing.

But Virgin Atlantic says this would give BA and American 62% of the traffic between Heathrow and the US.

Virgin chairman Sir Richard Branson has written to US presidential candidates Barack Obama and John McCain seeking their opposition.

A Virgin Atlantic spokesman said: “Dominant players push up prices and snuff out competitors. BA, American and Iberia would have 46.5% of the slots at Heathrow, where they would dominate most key routes.”

BA has applied for anti-trust immunity with American twice before, but found the price demanded by regulators – in slots it would have to surrender at Heathrow – too high.

The pair argue the situation has been transformed by the high oil price and deregulation of transatlantic services. They also point out anti-trust immunity has been granted to Air France-KLM, Delta Air Lines and Northwest Airlines.

But the Virgin spokesman said: “BA’s control of Heathrow means it cannot be compared with other airlines. Heathrow is full. Nothing has changed. We think the regulators will find [the alliance] anti-competitive.”

Industry sources described as “rubbish” reports that BA is prepared to give up a large number of Heathrow slots in return for immunity.




Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.