On 19 April 2012, the OFT announced its decision in its Competition Act 1998 investigation into collusion by BA and Virgin over the pricing of passenger fuel surcharges. It found that between August 2004 and January 2006, BA and Virgin coordinated their fuel surcharge pricing on long-haul passenger flights to and from the UK, by exchanging pricing and other commercially-sensitive information. Virgin received full immunity from fines under the OFT’s leniency policy while BA was fined £58.5m, a significant reduction from the £121.5m fine which was agreed in the BA and OFT’s 2007 early resolution agreement. This reduction reflects the value of the BA’s cooperation with the OFT and the OFT’s legal developments regarding penalty setting. Read more.
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OFT fines British airlines in airline fuel surcharges price-fixing case
- Mayer Brown LLP
- Gillian Sproul
- United Kingdom
- April 24 2012
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Peter Breepoel
Senior Patent Counsel
Royal DSM NV