rubik101
16th Feb 2008, 09:51
It seems the inspired and purely coincidental thinking by certain senior members of BA and Virgin management, to scrape even more money from the paying passenger, will cost them not only the large amount of money they are paying out now but maybe also their freedom. It seems an inspired method of losing the companies a huge amount of money to recoup very little in return. If Ryanair has been flying these recent years without adding a fuel surcharge, carrying more passengers than BA and still making a large profit, who had the best plan to deal with the situation? The so called Tinker or the high powered management at Big Airways?
Apropos the thread on the criminalisation of those who cause accidents, many who seem to think that pilots should be allowed to get away with murder/manslaughter, I thought it might be interesting to hear your thoughts on the possible outcome of the impending OFT and DOJ case.
Immunity because they were doing their brilliantly inspired jobs, or prosecution for fraud/price fixing? Delete as you think appropriate.
Btw, will all of you who paid for staff travel be claiming your refund?
Text below from Telegraph Business News.
British Airways and Virgin Atlantic to pay $200m in fuel cartel lawsuit
By Jonathan Russell
Last Updated: 11:57pm GMT 15/02/2008
British Airways and Virgin Atlantic have agreed to pay $200m (£102m) to settle a US class-action lawsuit to compensate 8m customers who were the victims of an illegal fuel surcharge cartel.
# Business comment: Fuel surcharge remains a cloud over name of BA
BA and Virgin to pay $200m in fuel cartel lawsuit
The case has now cost BA around £338m who have yet to answer allegations brought by the European Union over the price-fixing
For British Airways the payout comes on top of a £270m fine levied by UK and US regulators last year over its part in the fuel surcharge price-fixing scandal. Virgin Atlantic escaped the fine from the regulator as it blew the whistle on the cartel.
On top of the class-action payout, BA and Virgin face the embarrassment of running a national advertising campaign to inform passengers of how they can claim money back. Although the airlines will only be refunding up to £10 per long haul flight, for corporate clients that book hundreds of flights a year the sums could be significant.
An administrator is being set up to handle the claims, while a website, www.virginbapassengerrefund.co.uk, was due to go live on Friday with details on how to claim. It is understood the cost of the advertising campaign, the administration of the claims and the legal costs could add an extra $50m to the total bill.
The settlement covers the period between August 2004 and March 2006 when British Airways and Virgin Atlantic colluded on raising the price of fuel surcharges on long-haul flights. All customers that flew with the two airlines on any long-haul flight booked in the UK or US will be able to claim.
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British Airways chief executive Willie Walsh said: "As we have previously said, we absolutely condemn any anti-competitive activity by anybody. This settlement, which British Airways and Virgin Atlantic have jointly agreed with the lawyers for the plaintiffs, is fair and reasonable."
However, the settlement means that British Airways could be forced to raise the £350m provision it made to pay penalties connected to the fuel surcharge price-fixing case. Although a spokesman said the company was confident the sum was adequate, BA is close to exceeding breaching the provision.
Including the latest settlement, the case has now cost the airline around £338m. BA has yet to answer allegations brought by the European Union over the price-fixing of cargo fuel surcharges.
Although both BA and Virgin were keen to draw a line under the affair, it is likely to drag on with the possibility that senior BA staff could face criminal prosecution by the UK's Office of Fair Trading or the US Department of Justice.
Apropos the thread on the criminalisation of those who cause accidents, many who seem to think that pilots should be allowed to get away with murder/manslaughter, I thought it might be interesting to hear your thoughts on the possible outcome of the impending OFT and DOJ case.
Immunity because they were doing their brilliantly inspired jobs, or prosecution for fraud/price fixing? Delete as you think appropriate.
Btw, will all of you who paid for staff travel be claiming your refund?
Text below from Telegraph Business News.
British Airways and Virgin Atlantic to pay $200m in fuel cartel lawsuit
By Jonathan Russell
Last Updated: 11:57pm GMT 15/02/2008
British Airways and Virgin Atlantic have agreed to pay $200m (£102m) to settle a US class-action lawsuit to compensate 8m customers who were the victims of an illegal fuel surcharge cartel.
# Business comment: Fuel surcharge remains a cloud over name of BA
BA and Virgin to pay $200m in fuel cartel lawsuit
The case has now cost BA around £338m who have yet to answer allegations brought by the European Union over the price-fixing
For British Airways the payout comes on top of a £270m fine levied by UK and US regulators last year over its part in the fuel surcharge price-fixing scandal. Virgin Atlantic escaped the fine from the regulator as it blew the whistle on the cartel.
On top of the class-action payout, BA and Virgin face the embarrassment of running a national advertising campaign to inform passengers of how they can claim money back. Although the airlines will only be refunding up to £10 per long haul flight, for corporate clients that book hundreds of flights a year the sums could be significant.
An administrator is being set up to handle the claims, while a website, www.virginbapassengerrefund.co.uk, was due to go live on Friday with details on how to claim. It is understood the cost of the advertising campaign, the administration of the claims and the legal costs could add an extra $50m to the total bill.
The settlement covers the period between August 2004 and March 2006 when British Airways and Virgin Atlantic colluded on raising the price of fuel surcharges on long-haul flights. All customers that flew with the two airlines on any long-haul flight booked in the UK or US will be able to claim.
advertisement
British Airways chief executive Willie Walsh said: "As we have previously said, we absolutely condemn any anti-competitive activity by anybody. This settlement, which British Airways and Virgin Atlantic have jointly agreed with the lawyers for the plaintiffs, is fair and reasonable."
However, the settlement means that British Airways could be forced to raise the £350m provision it made to pay penalties connected to the fuel surcharge price-fixing case. Although a spokesman said the company was confident the sum was adequate, BA is close to exceeding breaching the provision.
Including the latest settlement, the case has now cost the airline around £338m. BA has yet to answer allegations brought by the European Union over the price-fixing of cargo fuel surcharges.
Although both BA and Virgin were keen to draw a line under the affair, it is likely to drag on with the possibility that senior BA staff could face criminal prosecution by the UK's Office of Fair Trading or the US Department of Justice.