Virgin Atlantic Exec Says Airline Ticket Prices Will Rise

British Airways and American Airlines customers could be paying more for tickets shortly if the European Union okays a tie-up between the two. Chief executive at Virgin Atlantic stated that the move would give BA a distinct advantage in a market which they currently dominate already.

Steve Ridgway, chief executive for Virgin Atlantic, made the statements in a recent interview saying that the tie-up would compromise open competition among UK airlines and passengers could begin to see an increase in airline ticket prices across the board.

The first comments, made by Mr Ridgway, are only the surface of what will be an all out competition war between BA and Virgin, which are already vying for the lucrative transatlantic market. Virgin has openly called out the European Commission to say that the union of the two airlines would allow them to coordinate schedules as prices taking away distinct competition on the market.

BA has made the comment that the tie-up, if approved by the Commission, would mean that fares would drop in cost, and added that the agreement would provide travellers with a greater variety of options and fares.
The airline industry has been struggling since the economy took a downturn, and most airlines will be posting tremendous losses from last year’s fiscal earnings.

Mr Ridgway added that prices will be increasing no matter the European Commissions decision in order for airlines to recuperate their losses from last year, however, he added the union would serve to aid in those price hikes.