News

Virgin Atlantic has sounded a warning over the prospect of a merger between British Airways (BA) American Airlines (AA).

The carrier said that an alliance between the two giants of the industry would create a 'stranglehold' on flights between the UK and the United States.

Virgin Atlantic also said that BA, AA and Iberia – another airline with which BA is in partnership talks – would control nearly half of all take-off and landing slots at Heathrow airport.

A merger between BA and AA would be bad news for passengers as well as competitor airlines, according to Virgin Atlantic, as it would eventually push up ticket prices by reducing competition.

This is reportedly the third time that BA has attempted an alliance with the American operator.

Virgin Atlantic president Richard Branson 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. BA/AA and Iberia would still be unacceptably dominant, with nearly half of all of the slots at Heathrow, leaving competitors powerless to take them on.'

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