Virgin submits formal complaint about IAG’s bmi takeover
Virgin Atlantic has submitted a formal complaint to the European Commission about IAG’s proposed takeover of bmi.
It claims prices will be hiked and flights cut if the deal goes ahead.
In its submission, Virgin says three key domestic routes to and from Heathrow would become British Airways monopoly routes – Aberdeen, Edinburgh and Manchester.
Competition would also be eradicated to some popular European destinations, Virgin claims.
It argues that when bmi withdrew its flights from Heathrow to Glasgow in early 2011, leaving BA as the sole operator, average fares increased by 34%.
It says research also shows that the number of flights on the route decreased by nearly half – not only from the loss of the bmi flights, but because BA also reduced its own flights on the route by almost 10%.
Virgin president Sir Richard Branson said: "This takeover would take British flying back to the dark ages. For years pioneering airlines have fought to provide consumers with more choice and lower fares. This move will see British Airways unravel all of this progress made.
"BA has a track record of dominating routes, forcing less flying and higher prices. BA is already operating on 60% of bmi’s routes so this move is clearly about knocking out the competition.
"This merger will see BA holding more than half of all take-off and landing slots at the UK’s only major international hub – an airport that has had much needed growth plans forcibly frozen. The regulators cannot allow British Airways to sew up UK flying and squeeze the life out of the travelling public.
"It is vital that regulatory authorities, in the UK as well as in Europe, give this merger the fullest possible scrutiny and ensure it is stopped."
** Do you agree with Virgin or would you like to see the deal go ahead? Send us your view by clicking on POST YOUR COMMENT below.
by Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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