On 19 April 2012, the OFT imposed a fine of £58.5 million on BA for coordinating with Virgin Atlantic Airways their fuel surcharge pricing on long-haul passenger flights to and from the UK, through the exchange of pricing and other commercially-sensitive information. The OFT has imposed a fine of £58.5 million on BA, which represents a significant reduction from the fine of £121.5 million agreed upon in the 2007 early resolution agreement between BA and the OFT. The OFT notes that the fine was reassessed following the issue of the statement of objections in November 2011 in light of a number of factors, including the fact that BA’s co-operation was greater than had been anticipated at the time of the early settlement agreement and the OFT’s re-evaluation of its penalty policy following the Competition Appeal Tribunal’s rulings in the construction industry and construction recruitment cartel appeals. Virgin Atlantic received full immunity from fines under the OFT’s leniency policy.
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Fuel surcharges fine
- Hogan Lovells
- United Kingdom
- May 3 2012
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