Virgin Atlantic runs ad campaign criticizing BA/AA alliance

LONDON - Virgin Atlantic is mounting a tactical marketing campaign to highlight its submission to the US Department of Transportation (DoT) against British Airway's proposed alliance with American Airlines (AA).

Virgin Atlantic
Virgin Atlantic

The deadline for comments from third parties passed last night, with the DoT due to make a decision about the case by the end of October.

The press ad continues the airline's ‘No way BA/AA' communications strategy, quoting former AA chairman and chief executive Bob Crandall. Once in favour of a tie-up with BA, Crandal is quoted as saying: ‘Any objective observer would have to look very hard to find a way in which alliances have benefited consumers.'

Virgin Atlantic claims that a partnership between the BA and AA would create a ‘monster monopoly', with the Oneworld alliance commanding nearly 50% of all take-off slots from London Heathrow airport.

A statement from the carrier reads: ‘BA and AA would be able to use their market power to raise fares, lessen service levels and inhibit innovation. The virtual monopoly would threaten the services of the remaining competitors in the relevant markets, and especially the services of the carriers that operate on the overlap routes.'

 

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