Virgin want UK competition authorities to look at BMI sale to IAG
17.01.12
Virgin Atlantic has called for UK competition authorities to look into the proposed purchase of BMI by British Airways’ parent IAG. IAG is hoping to finalise the £172.5m purchase by the end of March, but has to gain approval from the European Commission. The deal would give BA another 56 weekday slots at Heathrow.
Virgin Atlantic has called for UK regulator the Competition Commission look at the merger on competition grounds as it would affect domestic flights within the UK. A Virgin spokesman said: ‘It will have such a big impact in the UK – especially on flights between London and Scotland [not that Virgin flies between London and Scotland !] . It is a big issue and it will affect both consumers and businesses in the UK.'
‘We want to see the merger examined at the UK level as well as the European one. There are lots of regulatory problems with the IAG takeover of BMI. We cannot see it doing anything other than driving up prices.’
The spokesman said Virgin's offer to Lufthansa for BMI was ‘still on the table’ although it is no longer in talks with the German company. Press reports suggest Virgin had offered just £50m for BMI.
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