Branson campaigns against BA merger - News in brief - Evening Standard
       

Branson campaigns against BA merger

Virgin boss Sir Richard Branson is to launch a campaign to block a proposed merger between British Airways and a major American airline.

Sir Richard has been vocal in his opposition to the union between BA and American Airlines (AA), branding it a "monster monopoly".

However, BA says the joint business agreement, which also involves its Spanish airline partner Iberia, was good for passengers and good for the aviation industry.

The proposed deal will involve a combined route network serving 443 destinations in 106 countries with 6,200 daily departures.

But Sir Richard is unimpressed and hopes his 'No Way BA/AA' campaign will put the brakes on any progress.

The entrepreneur is likely to reiterate sentiments made when the merger was first proposed.

Back in mid-August Sir Richard said: "Make no mistake - if this monster monopoly is approved it will be third time unlucky for consumers. It will still be bad for passengers, bad for competition, and bad for the UK and US aviation industry.

"BA argues that the aviation landscape has changed since their last failed application. I disagree. Nothing has changed. Open skies has not delivered the greater competition that was promised because Heathrow is full."

But BA chief executive Willie Walsh says times have changed since the failed 1997 and 2001 previous BA-AA tie-up attempts, with far more competition now possible on transatlantic routes thanks to the so-called open skies agreement which took effect in March this year.

He denied a merger was a way for BA to introduce cutbacks and said that hearing people arguing that the deal would lead to higher fares and less competition was like "listening to a broken record".

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