Virgin and BA have reached agreement on a class action suit, which will now have to be approved by US courts. BA was fined for price-fixing on fuel surcharges while Virgin also admitted breaching the law but escaped a fine. Claims process Individuals and businesses that bought a ticket on either airline in the UK or the US will be able to claim refunds.
BA said today that BA and Virgin had agreed in principle to resolve the class action litigation pending in a California court. The firm involved could be getting many millions from this. Virgin escaped financial punishment last year after the group came forward to expose the collusion.
British Airways and Virgin are being forced to launch an advertising campaign this weekend that will tell customers how to claim compensation after the airlines were found guilty of price fixing. The historic campaign comes after law firm Cohen Milstein, which is acting on behalf of both individual and business consumers, won approval from a US court forcing the airlines to finance the campaign and alert customers to their rights to claim. The ads will launch in the national press, Sunday broadcasts, key travel trade press and online travel sites, international business media and regional.
Email address:. Flight times today are up to 35 minutes slower than they were 10 years ago, according to a new investigation. The watchdog suggests that the increase in journey time may be down to airlines giving themselves extra time to reach a destination, making it easier to mask delays and keep customers happy.
Every long-haul passenger who flew British Airways or Virgin Atlantic in paid more than they would have done if the airlines had not been operating an illegal cartel, a London court heard yesterday. Senior BA executives "sidestepped the proper process" and colluded with Virgin Atlantic executives to secretly fix the price of fuel charges in an attempt to make hundreds of millions of pounds, Southwark crown court heard. In one internal email, Burns said "whatever the timing we will get a media pasting" over any increases, and added that their "corporate reputation will take a very big and negative hit" at a time when BA was already facing industrial action.
The massive compensation drive will cover 5. From tonight, BA and Virgin Atlantic customers who believe they took a long-haul flight between August 11 and March 23 and bought their ticket in the UK can lodge a claim. The law firm that brought the class action lawsuit behind the compensation claim said it would be able to withstand the anticipated deluge of applications.
BA was fined for price-fixing on fuel surcharges. Virgin admitted breaching the law but escaped a fine. The refunds represent a third of the fuel surcharge levied on passengers at the time.
Frequent fliers could receive hundreds of pounds. BA said that about 11million passengers, including seven million in the UK, were affected by the settlement. Sir Richard Branson's Virgin Atlantic 'snitched' to the watchdogs about the price-fixing.
Ask a question. Related Content. On 15 Februaryit was announced that settlement terms have been reached with both British Airways and Virgin Atlantic to settle a class action claim to compensate both US and UK customers who suffered damage as a result of the fixing of fuel surcharges by the companies, contrary to US and UK competition law see Legal updates, OFT fines British Airways for price fixing and British Airways and Korean Air Lines plead guilty to price-fixing conspiracy charges.
Virgin Atlantic escaped any penalty because it blew the whistle on the collusion over setting fuel surcharges between and In a short statement BA said: "We are pleased that this matter, which concerned events between andhas been settled. The level of the fine remains a record for the OFT. Willie Walsh, the chief executive of BA's parent company, International Airlines Group, indicated last year that the company would contest the fine.