Richard Branson: Stop alliance between British Airways and American Airlines
Virgin Atlantic President Richard Branson is taking an active role in American politics. According to the BBC, Branson recently sent a written note to both U.S. presidential candidates, Sen. John McCain (R-Ariz) and Sen. Barak Obama (D-Ill.), warning that a proposed alliance between British Airways and American Airlines would harm the healthy competition among airlines on trans-Atlantic routes.
In the letter, Branson said that the alliance would result in higher fuel prices for customers and job losses for both airlines. However, British Airways said that it expected to complete a deal with American Airlines in the coming weeks. If American Airlines agrees, the next step would be to submit an application to U.S. regulators for antitrust immunity, according to CNNMoney.com.
What’s the holdup? Since the two airlines dominate the U.S.-England flight market at London’s Heathrow Airport, U.S. competition laws have made it difficult for the two to merger, citing unfair competition to smaller airlines wanting a piece of the same market. Nevertheless, the new “open skies” agreement between the U.S. and the European Union, which was put into place in March 2008 and says that airlines can fly to and from any point in the U.S. and the EU, might be loophole the airlines are looking for.
Branson, however, disagrees, and said in his letter that the open skies law has not increased competition or reduced ticket prices. Branson’s letter to the presidential hopefuls urges the two to resist approving the BA-AA alliance on the U.S.-London flights and says Virgin Atlantic will still continue to fly the popular, and profitable, route.
© Cheapflights Ltd Melanie Nayer




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