Virgin Atlantic says no to alliance between three competitors

There are reports that three major airlines are attempting to form a trans Atlantic joint venture. British Airways, American Airlines, and Iberia allegedly are considering apply for antitrust immunity. Virgin Atlantic who directly competes with all three of the major airlines has come out publicly against the alliance. A spokesperson for Virgin Atlantic said “We would oppose this attempt to create an anticompetitive alliance” and that “It would form a dominant mega-power on trans Atlantic air routes from two of the largest EU members, forcing up ticket prices for passengers and restricting choice.”

According to British Airway spokesperson, Cathy West, “BA has been in talks with American Airlines and Iberia for some time, but no decisions have been reached.”

This would not be the first attempt for British Airways and American Airlines to attempt antitrust immunity. Their bid for immunity was rejected largely impart because the two have a combined control of around half of the capacity between the United States.

The EU-US Open Skies Agreement which went in to effective this March allows any airline from the United States to fly to anywhere in the European Union and any airline from the European Union can fly to anywhere in the United States. It is because of this new agreement between the EU and the US that some think that British Airways, American Airlines, and Iberia may now be able to successfully argue their case for antitrust immunity because the agreement has forever changed the competition between the airlines.

www.virgin-atlantic.com
www.britishairways.com
www.aa.com
www.iberia.com