British Airways Embroiled in Price-Fixing Cartel Allegations

A potential class-action lawsuit against British Airways, Virgin Atlantic, and other unnamed airlines has been filed in the US, alleging a global conspiracy to fix prices for long-haul passenger flights. The law firm Cohen, Milstein, Hausfeld and Toll claims that the airlines have been working together to raise and maintain fuel surcharges, potentially affecting millions of passengers. The news comes as the FBI and the UK's Office of Fair Trading (OFT) continue their investigations into the matter, with both agencies conducting raids on British Airways' offices in New York and Heathrow.

Key Takeaways:

• The law firm Cohen, Milstein, Hausfeld and Toll has filed a class-action lawsuit against British Airways, Virgin Atlantic, and other unnamed airlines in the US, alleging a global conspiracy to fix prices for long-haul passenger flights.
• The lawsuit claims that the airlines have been working together to raise and maintain fuel surcharges, potentially affecting millions of passengers.
• The investigation has been ongoing since February, with the FBI and the OFT conducting raids on British Airways' offices in New York and Heathrow.
• American Airlines and United Airlines are assisting with the investigation, but stress that they are not the focus.
• Two British Airways executives, commercial director Martin George and head of communications Iain Burns, have been placed on leave of absence during the investigation.

Statistics:

• The potential class-action lawsuit could result in plaintiffs recouping three times their losses as compensation.
• The investigation has been ongoing since February, with regulators in Asia also investigating the airlines.
• The lawsuit claims that the airlines have been working together to fix prices for long-haul passenger flights, potentially affecting millions of passengers.
• British Airways has placed two executives on leave of absence during the investigation.
• The FBI and OFT have conducted raids on British Airways' offices in New York and Heathrow.

Sources:

• Cohen, Milstein, Hausfeld and Toll (law firm)
• FBI (Federal Bureau of Investigation)
• Office of Fair Trading (OFT)
• Department of Justice (DoJ)
• American Airlines
• United Airlines