Virgin Atlantic, British Airways Admit To Collusion, Prepare To Issue Vouchers

Virgin Atlantic and British Airways admitted last week to the Department of Justice that they colluded to levy excess fuel surcharges ranging from $10 to $100. Despite the admission, both airlines claim that passengers weren’t really overcharged.

From USA Today:

Officials at both British carriers say passengers weren’t overcharged despite the collusion. Virgin Atlantic spokesman Paul Charles said that “no passengers have paid more than the total ticket price would have been anyway.” That’s because, he says, the discussions between the rivals had no effect on the surcharges that were set.

Michael Hausfeld, lead attorney in a federal class action suit against the airlines, came up with an analogy to show the ridiculousness of the airlines’ logic:

“It’s like a thief beating you up, taking your wallet, and telling you, ‘But I left your money.’ Why would they do that? Of course they charged passengers more.”

The Department of Justice agreed, albeit without resorting to clever analogies:

“Does it make sense that a company would risk the type of fines that are being imposed, that executives would face lengthy jail sentences … to continue to participate day after day, month after month, year after year, in a conspiracy that had no effect?”

Bilked passengers should not expect a substantial refund. Hausfeld’s class action will likely extract $15 to $25 vouchers good for future travel with the overcharging airlines.

British Airways, Virgin Atlantic fliers could be reimbursed [USA Today]
(AP Photo/Matt Dunham)

Comments

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  1. Cowboys_fan says:

    “Lufthansa admitted collusion but avoided a fine by coming forward.”

    So now its okay to break the law as long as you admit it before they find out?
    Why aren’t these guys in jail? We ALL would go to prison for much less. I could care less about fines, refunds, etc. I want JAIL, its the only way they’ll learn.

  2. TechnoDestructo says:

    @Cowboys_fan:

    Jail? Nah, make them fly on Northwest or American a few times.

  3. Blueskylaw says:

    We overcharged them, but they were not overcharged. Typical Wall Street mentality.