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Sir Richard
12th Sep 2008, 11:56
From the Daily Wail

Richard Branson turns up the heat in the battle against British Airways

British Airway was accused of playing dirty tricks on the competition authorities after Virgin Atlantic said the UK flag carrier and its alliance partner American Airlines (AA) are seeking to hide the extent of their market dominance.

Virgin's founder and chairman Sir Richard Branson today turned up the volume in his campaign to prevent BA and AA's deal to work closely together and sell tickets to each other's customers.

"BA and AA are planning to create a monster monopoly on the transatlantic and here they are distorting the picture of just what a monster this will be," said Branson.

At issue is the filings BA and AA have made on their proposed alliance to Washington competition authorities in which they say they control 43% of the traffic between Heathrow and the US.

Virgin says that figure is more likely 62% because BA and AA's filings ignore millions of connecting passengers from other airlines

CockpitThruster
12th Sep 2008, 12:06
The question you should be asking is why aren't more people whining about this?

Monopoly's are bad for the business, and making a large transatlantic giant even bigger at a time when Open Skies is supposed to be encouraging more competition across the pond seems like a blatant controlling/dominance strategy to me.

If LCCs are to stand a chance of expanding across the water, which must surely be in the interests of passengers, then BAs smothering tactics should not be allowed to take place.

angels
12th Sep 2008, 12:11
Well if the figures don't include connecting passengers, then hasn't he got a point?

If someone gets off, say, an internal BMI flight to get on BA flight across the pond then shouldn't he/she be included in trans-Atlantic pax numbers?

Da Dog
12th Sep 2008, 12:15
I don't remember him complaining when he was part of the LHR Monopoly;)

WHBM
12th Sep 2008, 12:31
Unfortunately Richard Branson learnt a lot about aviation from Freddie Laker, who was another whiner to the press as a cheap way of getting the company profile up without paying for advertising.

I heard the interview on BBC Radio 4 this morning between Branson and Willie Walsh. Branson's hyperbole about everything was indeed grating. Willie, in contrast, was having a good day.

I can only think that merging BA and AA pricing across the Atlantic can be good for Virgin, who can adopt their usual tactic of letting BA set the price and then coming in at a bit less. If what RB says is true Virgin will clean up. I wonder why he can't see this.

Golden Ticket
12th Sep 2008, 14:13
I think he does know this which is why he has to be seen to complain vociferously. What he really wants is to be seen to oppose it then when it happens and he's riding along higher prices created by a large monopoly in the market he can turn round and say '...told you so...'.

He'll still take the money though cos he's not a fool.

He didn't come across well on Today earlier though. He sounded like he hadn't been properly briefed by his staff and was just digging up old dirt. :zzz:

M.Mouse
12th Sep 2008, 14:35
These two articles put some interesting facts against Mr. Branson's whinging.

British Airways link-up with American Airlines will not kill competition - Telegraph (http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/12/ccwalsh112.xml)

Ex-American Airlines chief tells Sir Richard Branson to play fair - Telegraph (http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/12/cncrandall112.xml)

radeng
12th Sep 2008, 14:44
Are monopolies inherently bad?

If you have an effective regulatory authority (and it is a VERY big IF), I believe that a monopoly serves the public better, because it doesn't have to fight off predators. Without an effective regulatory authority, it's just as big a disaster as the laissez faire model so popular these days which is called 'competition'.

When the railways were British Railways, there was far more flexibility in working to help passengers - eg Special Stop Notices to stop a train at a station to provide an otherwise missed connection.

Interestingly, having travelled to Oz and Kiwi on holiday on BA this last few weeks, all classes were jammed packed full except a BKK - SYD sector, where there were three seats spare in First. The rest as full. So BA should have made some profit on those flights.....

Carnage Matey!
12th Sep 2008, 14:48
If someone gets off, say, an internal BMI flight to get on BA flight across the pond then shouldn't he/she be included in trans-Atlantic pax numbers?

Bransons whinge about BA's 'misleading' figures was countered rather by Walsh pointing out that they had provided the competition commisioners with the figures they asked for in the format they asked for. If they'd wanted transfer passengers included they'd have got them. Branson is pushing it to complain that transfer passengers weren't included as his beef is that BA/AA would dominate the LHR to US market. If he wants to start including EU passengers then BA can quite easily hold up the figures comparing Skyteam and Star Alliances share of that market.

MONK757
12th Sep 2008, 15:04
I do recall reading in the Dail T an interview with Sir Michael Bishop, even he said it was nothing more than what already exists between LH & UA.

WHBM
12th Sep 2008, 17:24
It is unfortunately typical of R B interviews that he just shoots his mouth off. After the railway accident to the Virgin Train at Oxenholme, Lake District, last year, when the train was suddenly derailed at speed, at night, and went down the embankment, R B's interview stated the driver had "heroically saved" the passengers by stopping the train. You don't have to be a train buff to understand that if the train derails the driver can do precisely nothing. He has gone down among raiway professionals as a complete idiot for saying that.

I really do wish Branson and Virgin Atlantic well, but he needs to be more accurate with the media.