Virgin wants McCain, Obama to oppose American Air-BA-Iberia link-up

11 August 2008

Mumbai: Virgin Atlantic owner Sir Richard Branson has sought the support of US presidential candidates Barack Obama and John McCain for blocking a proposed link-up of American Airlines with it two main European partners - British Airways and Iberia.

The three airlines are expected to seek US government permission for closer cooperation on the trans-Atlantic flights as they try to cop up with high fuel costs and stiffer competition.

While a link-up of these airlines are widely expected to help air travelers, Virgin and its other critics say such cooperation could stifle competition, leading to higher ticket prices and fewer choices for consumers.

AMR Corporation's American Airlines, British Airways PLC and Spain's Iberia Líneas Aéreas de España SA are members of the 10-airline Oneworld alliance, which competes with the 21-member Star Alliance and the 11-member SkyTeam across their respective networks.

The planned alliance between BA and AA would ''severely damage competition on major transatlantic routes and leave consumers worse off,'' Virgin Atlantic said it a letter written to McCain and Obama.

''Airlines everywhere are struggling with the current price of oil, but the solution to their problems should not lie in an anti-competitive agreement which will inevitably lead to less competition and higher fares,'' Branson said in his letter to the two presidential candidates.