Second UK airline faces trouble over price fixing

The Office for Fair Trading (OFT) have confirmed that they have “issued a statement of objections” against Virgin Atlantic and Cathay Pacific.  The allegations relate to supposed price fixing on the Hong Kong to London route.

This news came last week at the same time as four British Airways personnel, three of whom no longer work for the airline, are in court accused of fixing prices of fuel surcharges with Virgin Atlantic.  Executives from Virgin are expected to be in court this week testifying against the accused after it was their airline that blew the whistle on the alleged cartel.

In the most recent case it was the Hong Kong based Cathay Pacific that exposed the suspected ticket price fixing.  In both cases the whistle blowing airline remains immune from any sanctions, providing their continued cooperation. 

Unlike the British Airways case no individuals at Virgin Atlantic face criminal convictions.  The airline however could lose up to 10% of its annual revenue if found guilty, this would be in the region of £250m.

The OFT has stated that no assumptions should be made that the airline has broken the law and no definitive findings have been made against them.  Virgin Atlantic now have the opportunity to formally respond to the allegations.

Source: The Telegraph