Airline passenger fuel surcharges on long-haul flights: price-fixing

Office of Fair Trading (OFT) closed Competition Act 1998 case.

• From: Competition and Markets Authority
• Published: 19 April 2012

• Case type: CA98 and civil cartels
• Case state: Closed
• Market sector: Transport
• Outcome: CA98 - infringement Chapter I
• Opened: 1 March 2006
• Closed: 19 April 2012

Case reference: CE/7691-06

Summary of work

On 19 April 2012 the OFT issued a decision that British Airways (BA) and Virgin Atlantic Airways (VAA) engaged in anti-competitive practices in breach of the Chapter I prohibition of the Competition Act 1998 and/or Article 101 of the TFEU in relation to the pricing of air passenger fuel surcharges. The OFT has found that between August 2004 and January 2006, BA and VAA co-ordinated their surcharge pricing on long-haul flights to and from the UK through the exchange of pricing and other commercially sensitive information. The OFT has imposed a fine of £58.5 million on BA. VAA brought the matter to the OFT's attention and, under the OFT’s leniency policy, has not been fined.

Related documents

• Concluded prosecutions
• Press release British Airways to pay record £121.5m penalty in price fixing investigation (1 August 2007)
• Press release OFT takes next procedural step in airline fuel surcharges case (8 November 2011)
• Press release British Airways to pay £58.5 million penalty in OFT fuel surcharge decision (19 April 2012)
• Download a non-confidential version of the OFT's decision (PDF 1.1MB)

Published 19 April 2012