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Branson warns on BA-AA link
Dick Murray11.08.08
Virgin boss Sir Richard Branson today warned both US Presidential candidates that a proposed alliance between British Airways and American Airlines would send fares sky high.
The move came as BA and AA met with US Department of Justice officials in Washington in an effort to win immunity from prosecution under US anti-monopoly laws.
Immunity would allow the UK's largest carrier to link with AA without the risk of a lengthy legal battle. That, say rival airlines, would give the alliance dominance of the highly profitable transatlantic market.
Sir Richard, whose Virgin Atlantic has 17,000 slots a year at Heathrow compared with BA and AA's 200,000 plus, has written to Senators Barack Obama and John McCain.
He said it was “an anti-competitive agreement which would inevitably lead to less competition and higher fares”.
