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An alliance between British Airways and American Airlines would form a “monster monopoly,” according to British entrepreneur Richard Branson.

Branson, head of the Virgin Group, which controls Virgin Atlantic Airlines, a major BA rival on the transatlantic route, said that an alliance between BA and American would strangle competition on services between the UK and the US.

He stressed: “If the proposed merger between BA and American Airlines is allowed to go ahead, then the result for passengers, employees, communities and for fair and healthy competition, would be disastrous.”

Virgin Atlantic has urged the US transportation department to reject the proposal for the alliance, which would allow the two carriers to cooperate on fares, schedules and cost-cutting measures.

In the application, an exemption is being sought from some anti-trust provisions.

The Obama administration is accepting comments from the public on the arrangement before it makes a decision. The final decision is anticipated within the next six months.

A spokesman for American Airlines commented: “As usual, Virgin seems to be trotting out old, outdated arguments that do not reflect the current environment and trying to sensationalize the matter.”

American argues that there is no risk of a monopoly because more than 40 airlines fly between Europe and the United States.

Thanks to www.reuters.com for the above quotes, for more information on this article please visit their website.

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