This page has been archived and is no longer updated. Find out more about page archiving.
Skip to main contentAccess keys helpA-Z index
BBC Learning EnglishLaunch BBC Media Player
  • Help
  • Text only
You are in: Learning English > News English > Words in the News
Learning English - Words in the News
15 February, 2008 - Published 15:37 GMT
BA and Virgin to pay for price fixing
British Airways planes

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:

Listen to the story

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

Listen to the words

The payout aims to settle a lawsuit
this large sum of money will be paid to passengers so they stop asking a court to take measures against the airlines

overcharged
made to pay too much

colluding
acting together - secretly and/or illegally - in order to deceive or cheat someone

supplements
here, extra money that you pay after you buy the ticket (because fuel costs have gone up)

exposed the price fixing
showed to the public that the airlines had agreed to act together to keep the prices high

wrath
extreme anger

settlement
agreement (about something they couldn't agree on before)

to claim a rebate
to ask to be paid back

investigated
carefully looked into, examined

freight rates
prices for transporting goods, not people

SEARCH IN LEARNING ENGLISH
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