The owner of Virgin Atlantic Airlines, Sir Richard Branson is set to pull out all stops in an attempt to scuttle the planned merger of British Airways and American Airlines. On Sunday, he wrote to the US presidential candidates, Barak Obama and John McCain, warning of the anti-competitive impact if the two major airlines decide to link up.

Branson pointed out in the letter that a merger between the British Airways and American Airlines would drastically restrict competition on major trans-Atlantic routes and take up almost half of all the take-off and landing slots at London’s Heathrow Airport. The lack of competition brought about by the proposed merger would eventually lead to a rise in air fares and harm the consumers in the long run.

Plans for a British Airways and American Airlines merger come in the wake of another proposed tie-up between British Airways and its Spanish rival, Iberia. A report in The Sunday Telegraph said that Virgin Atlantic is prepared to shell out $5.78 million in advertising and lobbying efforts in a bid to scuttle negotiations of a BA-AA alliance.

On the other hand, the British Airways is reported to have agreed to give up its right to hundreds of transatlantic flights if the move helps in gaining the support of US authorities for the merger. The report which appeared in the Mail in Sunday also writes that BA plans to meet officials from the US Department of Justice down the week to make its offer.

-Kalyani Mookherji