CRA advised Virgin Atlantic throughout proceedings in Europe and the US on Delta Airlines’ proposed acquisition of a 49% minority shareholding in Virgin Atlantic. Delta and Virgin will now enter into a fully integrated joint venture, bringing together their passenger operations between the UK and US. Following a Phase I investigation, the European Commission was satisfied that the combined entity would continue to face a strong competitive constraint on all overlapping routes, particularly from the British Airways – American Airlines joint venture.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...