United Airline
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BA's Plans For AA's Alliance In Setback-Report

Mon Dec 03, 2001 12:29 pm

BA's plans for American Airlines alliance in setback - report:

Plans by British Airways PLC to forge a business alliance with AMR Corp's American Airlines suffered a setback last week when a key witness in the US government's investigation condemned the tie-up, the Sunday Telegraph reported.

The newspaper said Michael Levine, a Harvard law professor and the architect of US airline deregulation, attacked the proposals, telling the US government that the link would dramatically reduce competition in most markets between Heathrow and America.

In his submission to the US Department of Transport, Levine argued that the proposed tie-up between BA and AA should only go ahead if competitive access to Heathrow is guaranteed for the American partners of other global alliances.

He said that unless access to Heathrow for BA's competitors is dramatically improved, the partnership will result in a duopoly operating across the Atlantic, involving the BA/AA alliance and the similar proposed link between United Airlines and BMI British Midland.

"It is my view that the AA/BA filing...should be thwarted either by disapproving immunity or insisting on removing barriers to airport access by competitors," Levine was quoted as saying.

A BA spokesman, however, rejected Levine's claim that access to Heathrow is too restricted.

"It is not true that competitors can't get into Heathrow. United Airlines has massively increased its services out of Heathrow. Virgin Atlantic also now has a very signficant service," he said.

© AFX News

Story filed: 14:43 Sunday 2nd December 2001

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Joined: Sat Apr 01, 2000 1:12 pm

RE: BA's Plans For AA's Alliance In Setback-Report

Mon Dec 03, 2001 2:22 pm

well most us airlines have access to heathrow one way or the other.. They should allow KLM to give some slots to NW, Air France to Delta and so on, then allow BA and AA to form their alliance
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RE: BA's Plans For AA's Alliance In Setback-Report

Mon Dec 03, 2001 3:25 pm

Are you saying that United is quitting LHR services...??

And that BAA will not remove them "barriers"...??

What barriers are you talking about..?