Virgin Atlantic And British Airways Colluded To Price-Fix Tickets

british-airways-barbados-fraud.jpg

You know, I have to confess that I don’t understand half of the news that involves big businesses in conspiracies to screw the little folks. I work with my hands to support my family, and once in a while I help out on the family boat (which I love to do but doesn’t pay at all) – so this big business stuff is in a different world than mine.

That’s why (I thought) we elected capable people to look after our interests.

Too bad that our travel industry is tanking. Too bad that our elected officials haven’t been able to do anything about it – and may have even harmed our travel industry in so many ways.

The one thing I really want to know is… During the time that Virgin Atlantic and British Airways were harming our travel industry…

1/ Did our politicians do anything about it?

2/ Did any of our politicians accept any gift or benefit from either Virgin Atlantic or British Airways?

I want you to read about how Richard Branson’s Virgin Atlantic and British Airways ILLEGALLY got together and decided to squeeze more money out of travelers to and from Barbados – and in so doing hurt our travel industry.

The USA has just made them pay. What do you think that Barbados will do about it?

Required Reading…

Telegraph UK: British Airways Hit By Massive Double Fine

Thanks to BFP reader A for the tip. 

21 Comments

  1. 1
    La De Da Says:

    How do you expect the Barbados Authorities to do anything ( I doubt they could do anything anyhow), when the Barbados Light and Power Co. has been doing this very thing to EVERY Barbadian for years?

  2. 2
    anon Says:

    there is no truth in your allegations about the light and power co.

  3. 3
    Anonymous Says:

    Say what you like about about the USA, it looks after its people. Price fixing is a way of life here in Barbados, but no one looks out for the interest of the Barbadian citizen. This is excellent news.

  4. 4
    Anonymous Says:

    I wish I could get something done about Cable & Wireless, Digicell, Barbados Light & Power, ADM, Williams Metals, Barbados’ shipping agencies, Chickmont Foods, Purity bakeries, etc, etc.

  5. 5
    Straight talk Says:

    USA are always quick to litigate against foreign competition.

    Californians only wish that they were as vigilant in protecting them against Enron and other domestic corporate abuses.

  6. 6
    wverdana Says:

    Wait and see….wait….

  7. 7
    naive Says:

    The irony is that these fines will not be going back to the passengers who were cheated, as they should, but to the bureaucracy controlling air travel.

    It is even suggested that BA may raise fares to pay the massive fines, thereby hitting their loyal customers twice.

  8. 8

    BFP – Your headline implies that Virgin management was at fault for the price collusion, but the article makes clear this was not the case.

    Certain Virgin employees colluded with BA, but as soon as Branson and chief executives found out what had happened they confessed the error to the authorities.

    That is why Virgin was not fined.

    We know you guys are hardpressed, but a little more care with your headlines would be appreciated.

  9. 9
    Straight talk Says:

    Freespeech:

    Whilst I agree that apparently only certain Virgin employees were actually involved in this collusion, who benefitted by their corrupt actions and what were the consequences for those breaching the rules.

    Remember the party game , Musical Chairs, it seems that BA weren’t quick enough to grab one of the three remaining chairs, and was left standing looking stupid, whilst Virgin, AA and Continental are free to carry on playing the game.

    Has Branson finally gone proactive in his long standing crusade against BA’s dirty tricks campaign?

  10. 10
    caribbean comment Says:

    Also note that it was the UK who took the lead in raiding BA and levying fines. The revelations could lead to class action suits against the guilty airlines, which could result in money being paid back to passengers.

  11. 11
    Paradox Says:

    Would Virgin have acted at all ?

    Did Virgin go along with B.A. because it felt a similar fate to ‘that of Freddie Laker’s’?

    B.A. got was a slap on the wrist.

  12. 12
    Straight talk Says:

    Little publicised fact: BA is not a UK registered company, it is an offshore entity, as is Virgin.

    Virgin is, or was, 51% owned by Singapore Airlines, I read some time ago, but things may have changed and I will stand to be corrected.

    UK government must love raking back some millions of avoided tax dollars.

  13. 13
    Adrian Loveridge Says:

    When fuel surcharging first raised its head in the 1970’s one British based charter airline starting imposing additionl charges on its flights.
    One tourism industry watcher calculated the actual cost of the fuel used on certain routes and it was discovered that the surcharge applied was in fact higher than the total cost of the fuel used.
    The airline soon after went out of business.

    LIAT applies a standard US$10 per flown sector surcharge calling it a ‘fuel/insurance’ charge.
    I wonder it anyone has calculated the actual cost of the fuel used by a Dash 8 on lets say Barbados to St. Lucia or St. Vincent?

    37 or 50 pax paying US$10 per person.

    US$370 or US$500!

    Makes you think!

    Perhaps one of their pilots reading BFP could inform us?

  14. 14
    Wishing in Vain Says:

    So it makes me ask the question if these two scamps are going to repay those passengers that they have ripped off over the period that they had this fuel surcharge in place ?

  15. 15
    Anonymous Says:

    shooting fish in a barrel is a (business) way of life in Barbados

  16. 16
    J. Payne Says:

    Well we kinda knew that was go happen when BWIA sold their slots in London….

  17. 17
    J. Payne Says:

    Well we kinda knew that was go happen when BWIA (Opps. AND— Air Jamaica.) sold their slots in London….

    Virgin Jamaica?
    P Sean Morris
    Saturday, June 09, 2007

    There have been tectonic shifts in the airline industry in recent months, and either cunningly or not, the Jamaican authorities noticed and perhaps decided to make a strategic move to reposition airlift to the island, especially from Europe. The acquisition by Virgin Atlantic of Air Jamaica’s slot should serve as a move to form a greater strategic alliance between Virgin Atlantic and Air Jamaica. In other words, it is an opportunity in the making for Jamaica to get rid of the loss-making airline and court Virgin to form a new airline – Virgin Jamaica.

    http://www.jamaicaobserver.com/columns/html/20070608T230000-0500_124094_OBS_VIRGIN_JAMAICA_.asp

    Yup… Virgin and dem are just getting rid of the “Loss Making” route by jacking up de fares. Nothing to see here folks… The governments now want us to keep moving and not pay attention to the huge fees which will hinder our tourism…

  18. 18
    J. Payne Says:

    #
    Anonymous
    August 1st, 2007 at 9:08 pm

    Say what you like about about the USA, it looks after its people. Price fixing is a way of life here in Barbados, but no one looks out for the interest of the Barbadian citizen. This is excellent news.
    #
    Anonymous
    August 1st, 2007 at 9:13 pm

    I wish I could get something done about Cable & Wireless, Digicell, Barbados Light & Power, ADM, Williams Metals, Barbados’ shipping agencies, Chickmont Foods, Purity bakeries, etc, etc.

    Re: Annon.

    The USA does??? When??? Do you remember the rolling blackouts in California? or Katrina??? All the US money now is getting sink- down in Iraq and the poor states have to cutback on funding on things like BRIDGE Maintenance. A few months back it was the double decker Oakland Bay Bridge out in California I think. And before that was the I95 Bridge in Connecticut… I don’t know what “looking out” the US doing for we, but juss-now I soon ‘gon start walking with my parachute juss in case.

    In terms of Digicel. MAN they really haven’t innovated anything. A Caribbean person really and truely could have done the success they have done. If I had the startup capital of Laqtel and had the chance to run Sunbeach man I would have give C&W and Digicel both a run for they money.

    I’m not going to say what technology I’m toying with now and learning how to design securely but if I ever drop it in Barbados I would say look out I’d have some very big global companies looking at my company to form partnership. As they say you ent see nothing yet. Digicel would probably want to buy me out but nah- I’d have a stronger entity as an independent co.

  19. 19
    J. Payne Says:

    If the current administration would keep their hand of meh company I would do fine globally.

  20. [...] more money out of travelers to and from Barbados – and in so doing hurt our travel industry.” Barbados Free Press wonders, “What do you think that Barbados will do about it?” Share [...]

  21. 21
    anon Says:

    can persons who orginated their journey from barbados during the period the surcharges were on, file a law suit?


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