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Virgin Atlantic, BA Squabbling over Heathrow Slots

Now that British Airways, American Airlines and three other carriers have announced their merger-which-isn't a merger, Virgin Atlantic is making a serious stink. After all, Richard Branson's baby holds just three percent of the slots at Heathrow, while BA and its newest pals control 47 percent of the landing rights at the airport.

This is actually the third time that British has tried to link up with American, but it's the first such attempt since the latest Open Skies provision was enacted, ostensibly to improve competition in the transatlantic market. But Branson says that hasn't yet happened--and won't if a tie-up between BA and AA is approved:

Open Skies has not delivered the greater competition that was promised because Heathrow is full. BA/AA and Iberia would still be unacceptably dominant, with nearly half of all of the slots at Heathrow, leaving competitors powerless to take them on.

For his part, British Airways CEO Willie Walsh says his airline doesn't plan to give up any market share to appease regulators. The UK Times asked him if he'd consider giving up any slots, which can sell for as much as £20 million ($37 million) a pair. His response?

I won't

Related Stories:
· Willie Walsh Vows Airline Will Not Surrender Slots [UK Times]
· Airline Mergers: American, British and Iberia Finally Make a Deal [Jaunted]