Virgin to launch appeal over bmi deal
Virgin Atlantic is to appeal against the European Commission’s decision to pass IAG’s takeover of bmi.
It argues that the deal, which was approved in 35 working days, will cause "serious competitive harm at Heathrow, placing British Airways in a position of total market dominance at the world’s busiest airport and completely eroding consumer choice".
Virgin said it will bid to operate all of the 12 remedy slots that BA has been forced to give up, but believes these are completely inadequate to address the damage which is being done by the deal.
The airline said it’s crucially important to not break up the remedy slots between numerous airlines because "effective competition can only be achieved by having a strong and visible alternative".
Virgin president Sir Richard Branson said: "We will challenge every aspect of this process which if allowed to stand, will undoubtedly damage the British airline industry for years to come.
"The European Commission has seemingly ignored all of the strong cases made by politicians, business groups and airlines, to enable one big company to become even more bloated.
"Competition regulation should protect the customer from monopoly situations where companies can set whatever prices they like and stop investing in their product. In these situations, the public suffers, the industry suffers, and the country suffers."
He added: "This deal was agreed with lightning speed and we think the number of slots offered is derisory – representing less than a quarter of bmi’s former network. The remedies should be there to replicate the competition that bmi represented."
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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