Virgin CEO Steve Ridgway said the UK carrier would press its continued opposition to the pact with the US Department of Justice, after the US Department of Transportation gave tentative approval for the carriers to coordinate their transatlantic services. By granting antitrust immunity, the Oneworld would enjoy commercial freedoms already given to members of the rival Star and SkyTeam alliances.
The European Commission is reviewing the Oneworld application, having already expressed concern about its competitive impact on seven transatlantic routes. The commission is also investigating the existing Star Alliance and SkyTeam groupings as part of a broader scrutiny of the alliance system.
BA and American have sought immunity since 1996, but two previous efforts foundered after regulators demanded they surrender slots at London’s congested Heathrow airport. In its latest ruling, the US regulator said Oneworld must give up four daily slot pairs at Heathrow to foster competition, compared to the 16 slot pairs proposed when they gave tentative approval to a similar proposal in 2002.
Final approval would result in nearly 90 per cent of transatlantic airline traffic being operated by alliances and Virgin’s other key concern centres around BA’s dominance over crucial slots at Heathrow, which even after the US regulator’s stipulation that four slots must be given up, BA and its partners would still control about 50 per cent of Heathrow slots, according to Virgin.