Branson appeals to US presidential candidates over BA tie-up
35 minutes ago
Virgin Atlantic boss Richard Branson has written to US presidential candidates Barack Obama and John McCain to warn against a potential alliance between British Airways and American Airlines, it emerged Monday.
British Airways had said last week that it was holding talks with Iberia of Spain and American Airlines about "increased cooperation" for their transatlantic operations and would seek US regulatory approval.
However, Virgin Atlantic president Branson has slammed the plans as "anti-competitive," according to excerpts from his letter that were published by the carrier on Monday.
"Airlines everywhere are struggling with the current price of oil, but the solution to their problems should not lie in an anti-competitive agreement which will inevitably lead to less competition and higher fares," Branson wrote in the letter to Senators Obama and McCain.
He added: "BA/AA would have a combination of high frequencies and a transatlantic network that could not be replicated by any other airline/alliance, and which would make it impossible for other carriers to compete for time-sensitive corporate or business travellers."
A combination of American Airlines, BA and Iberia would have almost half the takeoff and landing slots at London's Heathrow airport, Branson said.
Virgin Atlantic, a key competitor in the lucrative market for flights between Britain and the United States, is 51-percent owned by Branson's Virgin Group. Singapore Airlines holds the remaining 49 percent.
British Airways, meanwhile, is currently in merger talks with Spanish airline Iberia to create the third largest airline in the world in terms of income, with more than 16.5 billion euros (25.7 billion dollars).
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Originally Posted by stuart schechter
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