Friday, 10 February 2012

Nice Friday news for BA & Virgin

The top dogs at BA and Virgin Atlantic will today be pleased that the Nigerian government have decided to drop $235 million in fines imposed on the airlines over allegedly fraudulent price fixing on tickets.

The panel investigating the claims ruled that the Nigerian Civil Aviation Authority lacked enough regulatory power to fine the airlines when the alleged price fixing took place between 2004-2006. This means that the only action that could have been taken at this time was to issue orders to impose bans on carriers who inflated fares.

Travellers to Nigeria have good reason to feel agrgrieved after a six month investigation in 2004 found that fuel surcharges increased by £27.50 per flight, despite the cost of aviation fuel dropping. BA and Virgin Atlantic currently control around 90% of all traffic from UK to Nigeria and it is a particulalry lucrative market.

The airlines may be particulary relieved and the Nigerian Government very aggrieved after the ruling as both BA and Virgin Atlantic have previous for price fixing and fuel surcharges over flights to America.