The "monster monopoly" warning that Virgin Atlantic chief Sir Richard Branson had issued in opposition to the British Airways-American Airlines joint venture proposal seems to be falling on deaf ears. The airlines expect to clear the final hurdle – European regulators – this month, clearing the way for the realization of a 14-year effort.

Now that British Airways (BA) has merged with Iberia Airlines (IB) under a new holding company, the addition of American Airlines (AA) into its mix creates a very strong competitive force over the Atlantic. The airlines will soon be free to coordinate schedules, pricing and market their services more like a merged carrier than code-share partners.

British Airways and American Airlines have argued that other major carriers in Europe, namely Air France-KLM, enjoy the privileges of joint-venture flying that BA and AA have been denied for years. The same will hold true for Continental and United Airlines if they move ahead with their proposed merger. With BA and AA having received anti-trust immunity to go forward with their joint venture by the U.S. Department of Transportation recently, the final hurdle is about to be cleared with the approval from EU regulators. BA agreed to give up four slots (takeoff and landing rights) at its busiest hub, London's Heathrow Airport in order to get the blessing from regulators. Many analysts are surprised that so few slots were relinquished. It was anticipated during previous regulatory reviews that a significant divestiture of slots would be necessary.

British Airways, currently facing multiple work stoppages at the hands of its cabin crew, plus heavy losses from cancellations due to the volcanic ash clouds, is already training staff in preparation for the joint venture. There is big money at stake for the three airlines and if all goes as planned, an announcement can come as soon as August with full implementation in October. The alliance's management team will feature executives from the three airlines (BA, AA, and IB) and will be led by executives from American Airlines.

Where does that leave passengers? Initially, it should not be very noticeable other than the fact that you may see each airline placing its code on flights operated by the other two carriers more often than in the past. Since all three carriers are part of the oneworld® alliance, reciprocal mileage accrual and redemption will remain. Whether the new joint venture makes it more attractive for the airlines' respective frequent flyers depends on any improvements made to the programs in the future. The marketing for this joint venture will be in full swing come August and each airline will surely tout the benefits of this non-merger merger.

Virgin Atlantic's Richard Branson now is left to contemplate his next move. The outspoken chairman has suggested that its next move may very well be a merger of his own. Speaking to Airline Business on an inaugural Virgin Atlantic flight to Accra, Ghana, Branson said: "If the playing field is so tipped against us that it is almost impossible to be an independent airline, we may come to a position where we have to consolidate. But this is not something we want."