V Australia joins row over BA-AA alliance immunity
August 12, 2009
British Airways is accusing Virgin Atlantic of having double standards when it comes to anti-trust immunity, as the airline headed by Sir Richard Branson continues its attempts to prevent a partnership between BA and American Airlines on transatlantic services.
Sir Richard has said that he will take his campaign against the airline tie-up to the US Congress in September, appearing before the Judiciary Sub-committee on Competition Policy of the House of Representatives.
In a report in the Daily Telegraph, it was stated that the Virgin Atlantic founder will reiterate his position that anti-trust immunity for the BA-AA alliance would lead to the creation of a “monster monopoly”, effectively killing off any viable competition on services between London Heathrow and the US.
BA’s chief executive, Willie Walsh, had previously accused Branson of being a “broken record” in continuing to voice his opposition to the BA-AA tie-up, but is now even more incensed following the application of a Virgin-associated carrier applying for its own anti-trust immunity.
Virgin Blue, the Australian airline in which Branson holds a 26 per cent stake, is seeking anti-trust immunity for a venture with Delta Air Lines, which would “expand both carriers’ reach between the US and Australia and the South Pacific.”
Virgin Blue is seeking permission on behalf of V Australia, its new airline that faces stiff opposition on the transpacific route from Delta, Qantas and United.
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