Air passengers to get compensation after price-fixing

British Airways and Virgin Atlantic are to pay around £100m (€133m) to passengers following a US lawsuit brought on behalf of UK and American travellers affected by fuel surcharge price-fixing.

But while lawyers involved could end up many millions of pounds richer, passengers in the UK might get as little as £1 (€1.30) per ticket in compensation.

BA said today that BA and Virgin had agreed in principle to resolve the class action litigation pending in a California court.

It is thought that the settlement, which still has to be finally approved, will cost BA about £70m (€93m) and Virgin about £34m (€45m).

BA said that about 11 million passengers – including seven million in the UK - were affected by the settlement.

One aviation source said today: “The real winners here are the lawyers. The firm involved could be getting many millions from this.”

Virgin escaped financial punishment last year after the group came forward to expose the collusion.

BA chief executive Willie Walsh, said: “As we have previously said, we absolutely condemn any anti-competitive activity by anybody.

“This settlement, which BA and Virgin Atlantic have jointly agreed with the lawyers for the plaintiffs, is fair and reasonable. BA can now move on and do what we do best – delivering excellent customer service.”

A spokesman for Virgin Atlantic said today: “We deeply regret our involvement in this matter and believe that the provisional settlement reached draws a line under this episode.”

BA and Virgin admitted colluding over fuel surcharges on long-haul flights between August 2004 and January 2006.