SRB going to European Court to overturn BA/AA tie-up

[Nottingham Nick]

Link to story in Sunday Telegraph.

Am I the only one to think that SRB should take more of an interest in the actual running of the airline again, rather than be obsessed with BA/AA?

I am afraid I can't get too worked up about what BA/AA or Iberia are doing - to me it is just business. Am I missing something?

Nick

Nick, on the one hand I agree but on the other not. I do believe that if SRB spent more time on the development of the airline it would be beneficial in terms of product differentiation (and that may be the best way to compete) - but I do believe that BA and AA have achieved an extremely beneficial result that is anti-competitive. Now that Heathrow expansion is on the back burner, they've locked up a deal with the most derisory penalties that puts them in an extremely dominant position. They can move their pricing, FF reward schemes, networks and other benefits into even closer alignment, reduce more costs through sharing services and other gains. Further, I don't believe Open Skies II will happen because the Americans are so protectionist, and nor will Open Skies I be rolled back as result, so everyone has gained but VS has not. I too would be miffed. I also think the situation at Heathrow is also much different to other European hubs where there are dominant flag carriers - none really have a competitor like VS on home turf ... so yes, I think on balance I support him.