myguideTravel Blog

Fly the price-fixing skies!

August 18th, 2008

 Score one for the consumers as they obtain relief  from colluding airlines. In what, up to a few weeks ago, seemed like a never ending procession of ‘fuel surcharge hikes’ by airlines, a bit of good news has trickled out. Passengers who purchased long haul air transportation from British Airways or Virgin Atlantic Airways between August 11, 2004 and March 23, 2006 are entitled to a partial refund of the ‘fuel surcharge’ each airline collected as a proposed settlement in a class action suit has been reached.

This proposed settlement, reach in the US District Court for the District of Northern California, comes on the tails of the cargo cartel price fixing investigations where several carriers (including British Airways, QANTAS, and Korean Air) have also admitted guilt to the Department of Justice in the US.

To follow these two investigations is another trial in the UK where  several executives could see some jail time as a result of their actions. According to Dan Milmo at the Guardian newspaper, the men have been charged with “having dishonestly agreed with others to make or implement arrangements which directly or indirectly fixed the price for the supply in the United Kingdom of passenger air transport services by British Airways and Virgin Atlantic Airways”. 

The trial, scheduled to commence on September 24, 2008, is considered to be one of the UK’s most high-profile cartel cases ever and carry a maximum penalty of five years jail time.

Entry Filed under: Travel