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BA and Virgin to pay out refunds | |
(about 1 hour later) | |
People who flew long-haul with British Airways or Virgin Atlantic between 11 August 2004 and 23 March 2006 will be eligible for a refund. | |
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. | |
The refunds will be worth one-third of the fuel surcharge, between about £1 and £11.50 for each flight. | |
Claims process | |
Individuals and businesses that bought a ticket on either airline in the UK or the US will be able to claim refunds. | |
"Virgin deeply regrets its involvement and believes the provisional settlement draws a line under the episode," a spokesman for the airline said. | |
"The US courts still need to approve the refund process, which will take some time, and further details about the claims process will then be announced by an independent claims administrator," he added. | |
British Airways' chief executive Willie Walsh also said that the settlement would give the airline a chance to move on. | |
"As we have previously said, we absolutely condemn any anti-competitive activity by anybody," he said. | |
"This settlement, which British Airways and Virgin Atlantic have jointly agreed with the lawyers for the plaintiffs, is fair and reasonable," he added. | |
BA shares were down 1.9% in late-morning trading. | |
Whistle-blower | Whistle-blower |
The class action suit was brought by the US law firm Cohen Milstein. | |
Cohen Milstein estimates that the settlement will be worth about $200m (£100m), £73.5m of which will be set aside to pay claims by passengers who bought tickets in the UK in pounds sterling. | Cohen Milstein estimates that the settlement will be worth about $200m (£100m), £73.5m of which will be set aside to pay claims by passengers who bought tickets in the UK in pounds sterling. |
BA was fined £121.5m by the Office of Fair Trading and $300m by the US Department of Justice for colluding with Virgin on the level of fuel surcharges that would be added to their ticket prices. | |
Virgin escaped the fines because it had informed the authorities that the breaches had happened. | Virgin escaped the fines because it had informed the authorities that the breaches had happened. |