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Mergers and less competition will lead to higher prices
Cheapflights comments on BA/AA tie up
Friday, July 23, 2010

Commenting on the US Department of Transport’s approval for the BA/American Airlines trans-Atlantic joint venture, CEO of Cheapflights Media, Chris Cuddy said:

Cheapflights Media is pleased that the British Airways/American Airways joint venture on trans-Atlantic routes has finally been given the go-ahead by the US Department of Transport. This is the last regulatory hurdle which now puts them and their One World alliance partners on the same basis as the competing Star and Sky Team alliances. 

“As a consumer champion we are generally concerned that mergers and less competition will lead to higher prices. However, the US Department of Transport investigation puts the case that a better rationalised airline alliance can lower costs, which will allow more competitive fares to be passed on to consumers.

“It is certainly true that we need strong and healthy airlines that can compete on a global stage to offer low fares and great customer service. In this regard we believe this to be a positive tie up: good for the airlines, good for a healthy airline industry and good for consumers.”

Theodore Koumelis - Friday, July 23, 2010
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