Virgin Atlantic today submitted its response to the European Commission’s Market Testing report which details the airline’s key concerns with the commitments offered by BA and AA regarding the proposed anti-competitive alliance between BA and AA. Virgin Atlantic has yet to see any concrete consumer benefits which have been identified that could justify the Commission agreeing to anti-trust approval for the deal.

The key points of the submission are that the proposed commitments do not remedy the consumer harm identified by the Commission itself in its Statement of Objections as well as being insufficient, ineffective, and not viable.

Sir Richard Branson, President of Virgin Atlantic, commented;

"remain extremely concerned that consumers are not being put first in the European Commission’s decision-making process. No evidence of consumer benefits has been put forward. The Commission needs to throw out the commitments proposed by BA and AA which are insufficient in allaying the Commission’s concerns set out in its Statement of Objections. The problems with the remedies are wide-ranging � they are totally inadequate, both in scope and substance.

"A significant failing of the proposals is that there is no �fix it first’ approach, which would protect consumers from abuse by ensuring that competitors take up the remedies before BA and AA could start their collusion. It is clearly in BA and AA’s interests to offer the least attractive remedies possible so they do not face any additional competition."

Other key issues which Virgin Atlantic identifies within its submission include;

• The remedies fail to adequately address the significant barriers to entry including slot constraints, frequency advantage, hub dominance and access to connecting traffic that the Commission itself identified in its Statement of Objections.
  
  
• The number of slots are insufficient and the slots are not to be provided from existing frequencies - BA and AA will continue to have massive frequency advantage.
  
  
• Releasing slots only on a leasehold basis disincentivises new entry and the risk that competitors will end up paying for the leases would mean that not only will the competitors have to right the wrong but they may also pay for the privilege!
  
  

For further information, please contact the Virgin Atlantic press office e on 01293 747 373 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.