HEATHROW AIRPORT PARKING NEWS - 02/12/2008

VIRGIN MOVE TO BLOCK BA/AA "VIRTUAL MERGER"

Leading long-haul airline Virgin Atlantic has moved to block what it has called a "virtual merger" between British Airways (BA) and American Airlines (AA), which would create one of the world's largest carriers.

Virgin has submitted a document to the European Commission highlighting the reasons why it feels a move to unite the two firms would contravene competition legislation.

A statement on the airline's website says that a deal between BA and AA would see prices rise and the creation of anti-competitive scheduling, for example.

Steve Ridgway, Chief Executive of Virgin Atlantic, said: "We urge the European Commission to reject outright this third attempt by BA and AA to stifle competition between Heathrow and the US.

"Their virtual merger would lock-up one of the world’s busiest air corridors against new and existing competition, increase BA’s grip on the most constrained international airport in the world and cause grave harm to consumers with higher prices."

Virgin, which flies to a number of UK airports including its base at London Heathrow Airport's Terminal Three, has a history of clashing with BA.

The controversy of the so-called "dirty tricks" campaign of 1993 saw BA end a drawn-out libel conflict by apologising to Virgin and paying substantial damages.

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