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Walsh reiterates doubts over third runway and Virgin strategy

Willie Walsh, the boss of British Airways owner International Airlines Group, has repeated his prediction that no third runway will be built at Heathrow.

This is despite his belief that it represented the most compelling option for increasing the UK’s airport capacity.

He said that the recommendation of the Airport Commission under Sir Howard Davies would have little importance when it is delivered next summer.

“I don’t think you can take the politics out of airline capacity issues. It’s deeply ingrained — it has been for years and that’s the way it will always be,” he told The Times.

Walsh was speaking on board BA’s inaugural Airbus A380 flight to Washington.

He also claimed that a recent radical overhaul of rival Virgin Atlantic’s route network, to concentrate on the transatlantic market, was a sign that decisions about the UK airline’s future are being taken in Atlanta, the home of Delta, which bought a 49% stake in Sir Richard’s Branson’s carrier in 2012.

The European Commission is looking at Virgin Atlantic as part of an investigation into whether non-EU airlines, which have bought a minority stake in European carriers, are flouting laws by effectively controlling those businesses.

Virgin has always denied that it is controlled by Delta.

Walsh also claimed Virgin’s domestic airline – Little Red – has proved to be a “mistake,” The Telegraph reported.

“I have said from the very beginning Little Red would be Big Red, the performance must be dreadful.

“They are struggling to get load factors above 50%. You cannot make money flying aircraft that are less than half full. I don’t know why they did it. I said at the time I thought it would be a mistake, I am delighted to have been proven correct.”

Little Red has been at the centre of speculation amid expectations Virgin will have to withdraw the Heathrow to Scotland and Manchester routes – as it has done following a review of other unprofitable services.

IAG, which was formed in 2011 through the merger of BA and Iberia, also confirmed a report that it will lay out a plan to investors next month over paying its first dividend.

Walsh said the dividend would be the “one big milestone” he still has to achieve at IAG.

A Virgin Atlantic spokesman said: “Delta is, in our opinion, the best partner in the world, and they believe the same of us.

“We’re flattered he’s so rattled by Virgin Atlantic, and think this is recognition of the strength of competition to BA being delivered by the Virgin-Delta partnership.”

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