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You are here: Home / Uncategorized / BA/AA: Joint Venture Confirmed – Virgin on it’s tod.

BA/AA: Joint Venture Confirmed – Virgin on it’s tod.

29/09/2010 by Kevincm

News today has been released that say that the Joint Venture between British Airways and American Airlines has been given full approval, and has been signed off at a value of  £.4.4 Billion a year.

The terms of the Joint Venture allow the airlines to share costs and revenue on passengers from the European Union Area, Norway and Switzerland to the United States of America, Canada and Mexico.

The net looser in all of this is Virgin Atlantic, who are now one of the few airlines who operate to the USA from the EU and isn’t a member of a major alliance (and who think this will create a monster of an airline to combat)

British Airways indicates this news will bring about lower fares – unfortunately, my fare tracking indicates prices on fares are heading one way thanks to the new levels of Air Passenger Duty in November – I’ll give you a hint – it’s not downwards.

For Virgin, the need to align itself with an alliance will grow deeper today as its costs will be higher than it’s competitors over the pond now….

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Filed Under: Uncategorized Tagged With: American Airlines, British Airways, Virgin Atlantic

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