Learning English - Words in the News 15 February, 2008 - Published 15:37 GMT BA and Virgin to pay for price fixing | ||||||||||||
Two airlines - British Airways and Virgin Atlantic - have agreed to pay a total of $200m in compensation in a row about price fixing on transatlantic routes. Individual passengers will be eligible for refunds of around $15 a flight. This report from Mark Gregory: The payout aims to settle a lawsuit brought on behalf of tens of thousands of passengers who claimed they were overcharged on transatlantic flights between August 2004 and March 2006. It follows last year's decision by regulators on both sides of the Atlantic to fine British Airways a total of 500 million dollars for colluding with Virgin Atlantic on the level of fuel surcharges. These are supplements to normal ticket prices to cover rising aviation fuel costs. Virgin escaped penalty by the regulators because it had volunteered the information that exposed the price fixing. But both airlines have faced the wrath of passengers, who mounted a class action lawsuit before the US courts seeking compensation. The payout just agreed mainly relates to American passengers. The law firm that fought the case in the US is thinking of starting a similar action in the British courts seeking compensation for UK passengers. The settlement for American passengers allows them to claim a rebate for a third of the cost of the fuel surcharges - about fifteen dollars a flight. Allegations of collusion between airlines go much wider than BA and Virgin. They are among fifteen airlines currently being investigated by European Union regulators for fixing freight rates for goods transported by air. Mark Gregory, BBC News, London The payout aims to settle a lawsuit overcharged colluding supplements exposed the price fixing wrath settlement to claim a rebate investigated freight rates | Latest stories 27 May, 2011 Destruction of smallpox virus delayed 25 May, 2011 Micro-finance 'misused and abused' 20 May, 2011 Lonely planets 18 May, 2011 Germany to invest in more electric cars 16 May, 2011 Argentina builds a tower of books Other Stories | |||||||||||