Virgin founder Richard Branson on Monday criticised alliances between major carriers, including the Emirates-Qantas tie-up, as stifling competition and claimed it would lead to increased prices, according to Arabian Business.
Branson, whose Virgin Group part-owns UK-based Virgin Atlantic and Virgin Australia, said governments should have prevented partnerships such as that between Dubai's Emirates and Australian flag carrier Qantas, as well as between British Airways and American Airlines.
The BA-AA partnership formed four years ago brought together two of the world's largest airlines amid claims it would drive down prices on the routes between the two countries.
The airlines had had their alliance application rejected numerous times before it was finally approved in February 2010, in what Branson described as the airlines “finally finding a weak regulator”.
Branson, whose Virgin Group part-owns UK-based Virgin Atlantic and Virgin Australia, said governments should have prevented partnerships such as that between Dubai's Emirates and Australian flag carrier Qantas, as well as between British Airways and American Airlines.
The BA-AA partnership formed four years ago brought together two of the world's largest airlines amid claims it would drive down prices on the routes between the two countries.
The airlines had had their alliance application rejected numerous times before it was finally approved in February 2010, in what Branson described as the airlines “finally finding a weak regulator”.
Source:
Mubasher
