London-bound passengers from New York's JFK and Newark could see see fares shoot up, now that the discount carrier Virgin Atlantic is going steady with Delta.

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What does Delta Air Lines' 49 percent acquisition of Virgin Atlantic Airways, Ltd. mean to the consumer?

Nothing good, I'm afraid.

It further concentrates pricing coordination among the few airlines that fly from the United States to London Heathrow.

Although the alliance is put forth as offering super customer benefits, the real benefit is to the bottom line of the airlines, who, if they get anti-trust waivers, can coordinate on prices, schedules and ensure Delta coveted slots to expand at Heathrow.

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But customers who fly out of east coast airports likely will soon find a similar situation to what happened a few years ago when Delta formed a joint venture with Air France/KLM. Suddenly, competing non-stop flights to Paris on both Air France and Delta were exactly the same fare, down to the penny. Some flights schedules were coordinated so that the competing flight vanished, leaving only one choice.

Prices rose. And that's not good for competition or consumers.

Because anti-trust laws in this country have all the bite of a toothless Pomeranian, I'm expecting the powers that be to shut their eyes, wave their limp hands, and give Delta and Virgin Atlantic whatever they want, just keep those planes flying.

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But I bet that soon, London-bound passengers from New York's JFK and Newark will see fares shoot up, now that the discount carrier Virgin Atlantic is going steady with Delta.

For $360 million, the Delta acquisition of the 49 percent stake in Virgin Atlantic means "an expanded trans-Atlantic network and enhance competition between the UK and North America,", the press release said this morning. It said the joint venture would not only let airlines share costs and revenues, but combine their networks between the U.K. and North America with 31 peak-day round-trip flights, and offer reciprocal frequent flier benefits and use of airport lounges.

The joint venture is expected to be fully implemented by the end of 2013.

Maybe I'm wrong about all this, and it will be a consumer bonanza. We shall see.

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