Virgin to file European appeal of BMI takeover
Virgin Atlantic continues to object to the IAG takeover of BMI.
Travel Insurance News - 16/04/2012
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Sir Richard Branson’s airline is to file an appeal with European regulators following the UK’s decision to allow British Airways’ owner to buy BMI.
Virgin Atlantic said on Sunday that it would continue taking steps to block the sale in the hope of preventing “serious harm” to the airline industry in the United Kingdom. The news follows the decision by British authorities to allow IAG, the parent of Iberia and the UK flag carrier, to purchase the ailing company from Lufthansa if BA gives up 14 sets of landing and takeoff spots at grossly overcrowded Heathrow airport.
UK approval of the offer came just 35 days after the £172.5 million deal with Lufthansa was announced.
But Branson said to reporters at the weekend that Virgin was prepared to continue taking the fight to IAG so that the consumer would ultimately come out on top. He added that if the amount of landing slots given up by BA was “derisory” and that if the deal is allowed to continue that it would lead to BA having “total market dominance”.
News reports said that the takeover is also likely to lead to as many as 1,200 job losses at BMI-utilised airports in the UK. However, BA has said that it was likely that all 2,700 BMI jobs may have been lost without the IAG takeover.
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