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Wednesday, July 14, 1999 Published at 18:05 GMT 19:05 UK Business: The Company File Bitter taste of airline feud ![]() BA and Virgin have been locked together for nearly a decade Rivalry has its place in many different arenas - think of Arsenal and Tottenham, Thatcher and Heath, Bugs Bunny and Elmer Fudd. But in the business world, rarely has there been a relationship like that between British Airways and Virgin Atlantic. Wednesday's £4m fine on BA, after Virgin claimed it was offering incentives to travel agents, is the latest spat in a series of disputes that have lasted throughout the 1990s. Innovative and brash style When Virgin first came on the scene, there seemed little threat to BA, the established, traditional national carrier. But Richard Branson's business style matched his airline - innovative and brash. He accused BA of poaching Virgin's passengers, hacking into computers and feeding stories to the media. The "dirty tricks" row ended with each suing the other for libel. BA lost and had to apologise and pay Virgin £610,000 in damages.
In 1994 Virgin won a separate long-running battle with BA over the maintenance of its aircraft. BA agreed to pay £2.65m compensation. Mr Branson rarely misses an opportunity to put Virgin's views.
But the feud has not been without its moments of pure mischief on either side.
When BA announced it was installing beds in business class, Virgin responded by promising double beds. Rare PR victory for BA Mr Branson has tried to stop BA calling itself the world's favourite airline, although last month it was given permission to carry on by the advertising authorities. And if Virgin disagrees with BA's adverts, its own don't miss a trick. "BA does not give a shiatsu" declared one, promoting the availability of a massage on Virgin flights. But behind all the publicity-seeking and showboating, BA has suffered. The challenge from Virgin is just one of many that it faces.
"This is an airline. I am not going to open a bank. I'm not going to launch clothing shops. I'm not going to be dressing up in bridal gear. I'm not going to be wearing make-up," Mr Ayling told one journalist. " I do it my way. I don't think stunts are the way to manage a company." Well, not quite. Recently British Airways announced it would launch an off-shore Internet bank, as a service for the rich and high-powered among its frequent flyers. David and Goliath Looking at both companies, it might be easy to infer that there is little between them. The competition has brought more routes, cheaper flights, improved passenger services. And yet the style of the two businesses and their bosses could not be more different. Some see Richard Branson as a thorn in BA's flesh, others as a David to their Goliath. But there is little indication that he plans to ease up in a feud that has lasted for nearly a decade.
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