BA / AA transatlantic deal ‘to get the go-ahead’

From UK Airport News:

BA / AA transatlantic deal ‘to get the go-ahead’

25.10.09

British Airways is expected to receive regulatory approval from the US Department of Transportation this week on its proposed transatlantic tie-up with American Airlines, despite fierce opposition from rival Virgin Atlantic, and some political opposition, the Scotland on Sunday reports.

The newspaper says that American regulators have accepted the two airlines’ argument that they should be given a level playing field with the existing antitrust immunities given to the Star Alliance collaboration between Lufthansa and United Airlines of the US, and the SkyTeam venture between Air France-KLM and American airline Delta.

However, its ‘sources’ say it is still possible that the European Commission will block the joint venture . The agreement of both European and US regulators to BA/AA co-operation, mainly on lucrative transatlantic routes, is necessary. The EC has made public its concern that the deal may breach competition rules. Star Alliance and SkyTeam are also under EC investigation but have anti-trust immunity from US regulators.

Douglas McNeill, transport analyst at broker Astaire Securities, told the Scotland on Sunday: ‘I think it is odds-on that BA and AA will get the go-ahead. Although a couple of senators have written to the DoT querying the alliance, there has been no serious lobby against it.’

Anyone got an opinion on this?

I wonder what Mr Branson’s response will be to this?