[Anonymous]

[continentalclub]

News wires are reporting that the trial of former British Airways’ executives accused of colluding with Virgin Atlantic to set fuel surcharges has collapsed:

http://news.bbc.co.uk/1/hi/business/10104556.stm

Whilst embarrassing for the Office of Fair Trading, who brought the case, the whole episode was tainted with more than a hint of distastefulness by dint of the immunity granted to the Virgin whistleblowers.

How this development might affect the other recent price-fixing case involving Virgin and Cathay Pacific remains to be seen.

[VintageKrug]

What a waste of public money; more evidence of the incompetence of the existing regulatory regime in safeguarding the consumer.

[StephenLondon]

Embarrassing for the OFT? It is shambolic. Imagine the damage it has done to several people’s lives and reputations…I can see some lawsuits being filed to claim compensation, for sure.
Doesn’t cast the best light on Virgin Atlantic, either…

[JordanD]

So where does this leave the compensation payments that were being made to the public by Air Passenger Refund?

[Cedric_Statherby]

One of the things that I hope changes as a result of this shambles is the idea that Virgin can obtain total immunity for snitching on BA.

I always thought it quite absurd for one company to collude with another and then run to the authorities. It almost becomes a game of enticement – I encourage you to break the law with me, then I run to the authorities so only you get punished.

Virgin’s game plan was to benefit from the collusion AND benefit from getting a direct competitor heavily fined. I am delighted their plan failed – not because I am an unthinking BA supporter, but because I rigidly believe in fair play.

[LuganoPirate]

Agree with you Cedric.

Does anyone know what will happen with the massive fine BA had to pay? Can’t see Government handing it back but if the criminal case collapsed, I guess BA will be entitled to a “Refund”!!!

[VintageKrug]

Interestinginly, Virgin are under investigation on another price-fixing case.

This time Virgin are not the whistleblowers, they are defending their case against Cathay who have immunity.

It does seem more fair if both parties face some censure beyond purely financial reparations.

I don’t know the answer to the what will happen to the fines, but it’s an interesting point which perhaps BT might look into further.

I understand further evidence came to light which proved that Virgin was in possession of emails which proved that there was no collusion and that BA set its prices independently of Virgin. Pretty damning, when you think this has ruined the lives of the four defendants.

My understanding was that was a civil case, which succeeded whereas this was a criminal case, which did not. However, in light of the new evidence, the civil case might be deserving of a re-trial.

[LuganoPirate]

It’s a good point VK. I’m not a lawyer, but if the civil case was ruled in favour of the government, who withheld evidence that they had, then the verdict should be overturned and all fines paid, both in the UK, and in the US I presume, will have to be returned.

If Virgin deliberately kept this secret, in order to weaken their competitor, then maybe they should also be fined and made to pay compensation. That would ruffle “Old Beardies” hair somewhat!

[Author]

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