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Virgin keeps immunity in price-fixing case

Virgin Atlantic has been told it will escape possible fines in the wake of the price fixing probe involving British Airways.

The development comes after a review of the airline’s immunity by the Office of Fair Trading in the wake of a related criminal trail which collapsed last year.

BA was fined a record £121.5 million by the Office of Fair Trading in 2007 after Virgin blew the whistle on the rival carrier over fuel surcharge collusion on long haul flights.

But a criminal trial of four current and former BA executives fell apart after the disclosure of thousands of new documents on Virgin Atlantic’s databases.

BA’s fine was cut by the OFT four years ago because the airline offered its full co-operation but the airline still faces a financial penalty.

Virgin’s immunity against any fines has been reviewed following the OFT’s decision in May last year to discontinue criminal proceedings.

The regulator said: “The OFT has decided that Virgin Atlantic’s conduct did not amount to non co-operation such as to warrant the revocation of Virgin Atlantic’s immunity. The OFT will publish the reasons for this decision in due course.”

The move to issue a “statement of objections” is a procedural step before the OFT can make a final decision in its civil law investigation into the price fixing.

Both airlines now have the opportunity to respond to the OFT but BA is reaming tight-lipped on whether it will contest the fine.

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