Jaunted

As the Virgin argument goes, a partnership like this would control 62% of all flights between Heathrow and JFK and a staggering 75% of all flights to Miami, giving the airlines little incentive to keep fares low and service high.

BA and AA, for their part, claim that the alliance - which would also include BA's planned acquisition of Iberia Airlines - is the only way to remain profitable in an era of high oil prices. And they're willing to forgo hundreds of transatlantic flights to meet the requirements of anti-trust laws.

We're all for competition and low airfares, and think Branson would be an awesome guy to hang out with (possibly on the new submarine), but at this point we're willing to go with whatever works. Over the past five years, quasi-unfettered competition in the airline industry has resulted in spotty service, lousy on-time rates, and special fees for things that used to be free. What will it take to fix a broken system? The "synergy-leveraging" power of a global über-airline, or a put-the-screws-to-'em approach that has airlines cutting each other's throats and looking to shave costs anywhere and everywhere? We don't know how big is too big, and whether the U.S. model of pure competition is always appropriate for the airline industry. We just want our flights to be affordable and on-time. And a bag of pretzels might be nice.

Related Stories:
· Branson Warns U.S. Presidential Candidates on BA/AA [Reuters]
· BA Will Give Up Hundreds of U.S. Flights to Forge AA Pact [Mail Online]
· Virgin Launches Campaign to Scupper BA Deal [Telegraph.co.uk]
· Airlines Coverage [Jaunted]

[Photo: Mobile Marketing News]

Tags: Airlines / British Airways / American Airlines / JFK / Heathrow / Virgin Atlantic / Airline Analysis / Airline News

by Victor Ozols