In a significant move, Richard Branson, the founder of Virgin Airlines appears to have sent a letter to both Republican presidential candidate John McCain and his Democratic rival, Barack Obama regarding the pitfalls involved in the proposed merger between British Airways and American Airlines.

However, according to the argument made by Branson, it appears that a fusion of British Airways and American Airlines would lead to the decline of competition in the transatlantic market, thereby negatively impacting the travellers both from the UK and the US. Over and above, a press report observes that according to the belief by Branson, the ticket prices are bound to increase significantly for passengers in addition to the possibilities for considerable redundancies in both Britain and the US.  

It appears that the American regulators will be examining a proposal in the near future that would find British Airways and American Airlines enter into close cooperation with respect to transatlantic routes. The essential aspects of the new deal would be a crucial revenue sharing structure that will be achieved between the two airlines. According to the indication given by the British Airways, a formal proposal is expected to be completed in less than a week, following which the same will be forwarded to the regulators for approval. While such moves are under progress, it appears that British Airways is into making separate negotiations with Spain's Iberia, in a bid aimed at a merger with this airline as well.