Statement of objections issued against Cathay Pacific Airways and Virgin Atlantic

On 22 April 2010, the OFT issued a statement of objections alleging that Cathay Pacific Airways (“Cathay”) and Virgin Atlantic infringed competition law in relation to passenger services on the London to Hong Kong route.

It is alleged that a number of contacts between employees of the two airlines over a number of years had led to the exchange of commercially sensitive information on pricing and other commercial matters with the aim of coordinating the parties' respective pricing strategies regarding passenger fares.

Under the leniency policy, Cathay is immune from paying a fine as it blew the whistle to the OFT about the infringement, provided it continues to cooperate.