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Virgin Atlantic

Virgin urges EU to block BA - AA merger

December 2, 2008

Virgin Atlantic has urged the European Commission to reject the planned merger between British Airways and American Airlines.

The British-owned airline has argued that this partnership between two of the world's biggest airlines would result in increased fares, adjusted schedules to keep out competitors, and the removal of feeder traffic to other carriers at London Heathrow Airport.

In a document submitted to the European Commission, Virgin Atlantic also suggests that BA and AA would have a monopoly on some of the busiest and most profitable routes from Heathrow, including those to Chicago, Boston Miami and Seattle.

Steve Ridgway, chief executive of Virgin Atlantic, believes that if BA and AA are allowed to combine competition on flights between London Heathrow Airport and the US would be stifled.

He said: "Their virtual merger would lock-up one of the world’s busiest air corridors against new and existing competition, increase BA’s grip on the most constrained international airport in the world."

© Adfero Ltd

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