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BA and Virgin now face US lawsuit over price fixing claims
British Airways, Virgin Atlantic and other unnamed airlines now face a potentially expensive class action lawsuit being filed in the US.
According to reports in the UK business press today, law firm Cohen, Milstein, Hausfeld and Toll has been compiling a list of complainants in a similar case which involved surcharges on cargo flights.
Now the firm has filed suit against BA, Virgin and other airlines for operating a “global conspiracy to fix, raise, maintain and/or stabilise prices for long-haul passenger flights to and from the UK”.
If successful, the lawsuit could see plaintiffs recoup three times their losses as compensation.
The Guardian’s report also claims that the FBI raided BA’s New York offices on June 13, the same day as investigators from the Office of Fair Trading entered the airline’s Heathrow headquarters.
BA and Virgin refused to comment on these latest revelations.
Last Thursday, BA’s share price dropped after it was revealed that it was under investigation by the Department of Justice and the OFT over allegations over ‘cartel activity’.
BA announced it had placed its commercial director Martin George and head of communications Iain Burns on leave of absence during the investigation.
The inquiry is now understood to have followed a tip-off by Virgin after the airline was allegedly “sounded out” by BA about raising the levy.
Virgin said it is co-operating fully with the investigation.
American Airlines and United Airlines said they are also assisting with investigations but stressed they are not the focus of the inquiry.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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