Sir Richard Branson, President of Virgin Atlantic, today labelled BA and AA’s proposed package of commitments put forward in the European Commission’s formal Market Testing report as �woefully inadequate�. Earlier this week he met with the new Vice President of the Commission and Commissioner for Competition Joaquin Almunia to discuss his grave concerns about the proposed BA/AA alliance. During the meeting he asked the Commissioner to consider the proposed alliance as a consumer, as well as the Commissioner with responsibility for competition.

Commenting on the meeting, Sir Richard said;

"I was pleased to have the opportunity to meet with the Commissioner to discuss our very real concerns for consumers if this anti-competitive alliance were to be permitted to proceed. I hope that the Commissioner takes time to consider the proposals through the eyes of consumers before any decision is taken on whether it is given the go-ahead."

The market testing report sets out the package of commitments BA and AA have proposed in an attempt to counteract the anti-competitive effects of the proposed monopolistic alliance. All interested parties are invited to respond to the proposals before the Commission takes a decision on whether its own concerns regarding the proposed alliance, as expressed in its Statement of Objections, have been adequately met. In its Statement of Objections the Commission took the view that the agreement may be in breach of EU rules on anti-competitive business practices.

Commenting on the market testing report, Sir Richard Branson, said;

"The proposals are woefully inadequate in counter-acting the anti-competitive harm of a combined BA/AA. I continue to question why the Commission is even considering these proposals to try and put right the consumer harm of this monster monopoly when it does not seem to have any evidence of concrete consumer benefits. You can’t remedy the irremediable.


"The proposals fall far short of what is necessary and Virgin Atlantic will seek to demonstrate why this anti-competitive alliance should be stopped. Consumers on both sides of the Atlantic are relying on the European Commission to protect their rights. We will continue to work with the Commission to help them recognise the potential damage BA/AA could cause as the new Commissioner gets to grips with this important issue.�

For further information please contact the Virgin Atlantic Press Office on 01293 747373 or log onto www.virginatlantic.com/pressoffice


Notes to Editors
The key points of Virgin Atlantic’s opposition to the proposed merger include:
� BA/AA will use their exemption from competition laws and their overwhelming dominance to destroy competition, raise prices and reduce choice
� BA/AA will have a monopoly or be dominant on some of the busiest and most profitable routes between the US and Heathrow.
� In terms of capacity BA and AA would control:

-LHR- BOS 80%
-LHR-DFW 100%

-LHR-JFK 62%
-LHR � LA 48%
-LHR-MIA 70%
-LHR-ORD 68%
� Heathrow Airport is unique in Europe. Unlike other European hubs Heathrow is virtually full preventing competitors from challenging the dominance of BA and AA. BA/AA would have 47% of slots at Heathrow.