Refunds for British Airways/ Virgin Atlantic Passengers
Passengers who travelled with either Virgin Atlantic or British Airways on long-haul flights between the dates of August 11th 2004 and March 23rd March 2006 will be able to receive a refund, it has emerged.
As these words were written, the two airlines had agreed on a class action suit, which now needs the approval of courts in the US.
British Airways Fined £270m Over Fuel Surcharges
As covered by Airport International over summer 2007, British Airways was fined a total of £270 million after it was found to have colluded with Virgin Atlantic over the price of fuel.
The fines were demanded by both the (UK) Office of Fair Trading and the US Department of Justice – an unprecedented action. Never before had both the British and American industry regulators acted in this way against a single company.
At the time, OFT Chairman Phillip Collins spoke of how the fine the British regulator had imposed would "send an important message to corporate boards and business leaders about our intention to enforce the law, and serves to remind companies of the substantial risks involved if they are found to engage in such behaviour".
Virgin, meanwhile, escaped having to pay a financial penalty
Passenger Refunds Claimable at up to £11.50
The refunds will be provided at a rate equivalent to 33 per cent of the fuel surcharge – placing them on a scale between around £1 and £11.50.
Travellers and businesses that purchased tickets will be able to claim these refunds provided that the original transactions took place in either the US or UK.
A Virgin Atlantic spokesman said the airline “deeply regrets its involvement and believes the provisional settlement draws a line under the episode."
He added: "The US courts still need to approve the refund process, which will take some time, and further details about the claims process will then be announced by an independent claims administrator."
His sentiments about moving on were shared by Willie Walsh, the Chief Executive of British Airways.
"As we have previously said, we absolutely condemn any anti-competitive activity by anybody”, Mr Walsh stated, adding: "This settlement, which British Airways and Virgin Atlantic have jointly agreed with the lawyers for the plaintiffs, is fair and reasonable.”
Law group Cohen Milstein – which is involved in the class-action suit - estimates that the total settlement figure will stand at around £100 million. Of this, approximately 74 per cent will be earmarked to settle the claims of passengers.
Source – Airport International’s London Reporter
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