Thursday, 8 November 2012

Nigerian Senate Fines British Airways and Virgin Atlantic $235million over price fixing. Again

The Nigerian Senate Committee on Aviation on Tuesday ordered the Nigerian Civil Aviation Authority (NCAA) to work with the Nigerian Ministry of Justice and the Economic and Financial Crimes Commission (EFCC) in ensuring British Airways (BA) and Virgin Atlantic (VS) pay fines of $135 million and $100million (i.e N21.87billion and N1.62billion) respectively after both were found guilty on various counts of price fixing and coercion.
According to press reports, the charges leveled against the British carriers, and on which they were found guilty, were:
  • conspiring to fix prices at the expense of Nigeria,
  • operating a duopoly to the detriment of other airlines,
  • engaging in the passenger fuel surcharge scam.
According to the country's aviation authorities, the differences between fares Nigerians are made to pay on the Lagos-London-Lagos route and what Ghanaians pay on the Accra-London-Accra route are: US4'239 for first class, USD1'055 for business class and USD92 for premium economy.
Presenting the report, the Chairman of the committee, Senator Uzodinma said British Airways and Virgin Atlantic Airways were found guilty of the offenses, adding that both airlines were also involved in the passenger fuel surcharge.
German carrier Lufthansa (LH) was also singled out as owing the NCAA over $14million.

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