Virgin Atlantic responds to European Commission about BA/AA
Virgin Atlantic Airways, one of the world’s leading long-haul airlines, has responded to the European Commission’s Statement of Objections about British Airways and American Airlines’ plans to effectively merge.
Virgin Atlantic has previously told regulators in Europe and the U.S. that BA/AA would be a monster monopoly and should not be allowed to go ahead.
In its submission, Virgin Atlantic goes further and says:
“The proposed BA/AA and Iberia alliance would have appreciable and lasting negative effects for both long-term competition and consumers. It would allow a combined BA/AA/Iberia to dominate on routes between London Heathrow and the U.S. and, compounded by the considerable barriers to entry, to use their combined market power to weaken competitors’ offerings, thereby further strengthening and entrenching their own dominance to the detriment of consumers. Last week, Willie Walsh, Chief Executive of BA, told analysts “I think it’s well recognized that Heathrow is full and the opportunity to acquire additional slots, while not impossible, is difficult.”
Virgin Atlantic agrees with Walsh that Heathrow is full, and even being forced to give up a large number of slots would not be an appropriate remedy in return for allowing the proposals to proceed. Only a decision by EU and U.S. regulators to turn down the proposals, because they are anti-competitive, would be an acceptable outcome for consumers.
Airlines, British Airways, Europe, North America, Virgin Atlantic
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