BA gets £121.5m price-fixing fine....

[Gollom]

Does anybody know where these fines actually go? Is anybody naive enough to think that we (the travelling public) will not end up paying the fine via increased fares/downgraded service etc?

http://news.bbc.co.uk/1/hi/business/6925397.stm

Guess the price fixing worked in a roundabout way then

Sound like a case for....... GolJo! :bannana:

 

[kikkthecat]

As I understand it the fines will be going to the UK Office of Fair Trading and the US department of Justice.

From the article.

'Important message'

BA had colluded with Virgin Atlantic on at least six occasions between August 2004 and January 2006, the OFT said. During that time, surcharges rose from £5 to £60 per ticket.

So Virgin were involved for a year and a half and get off scott free because they were the first to own up ?
BA must be fuming as both companies are obviously guilty but only one of them fined.

 

[recycled]

Virgin were working undercover for the OFT probably
.
Do not travel BA for the next 5yrs as the direcors will not be taking pay cuts and the money must come from somewhere.

 

[grober]

When thieves fall out honest men come by their own. [spanish proverb]

 

[Gollom]

As I understand it the fines will be going to the UK Office of Fair Trading and the US department of Justice.

But who gets the money? Is it used to run the departments? If so it could be argued that the departments have a neutral effect

Ergo, if they did not exist I may get overcharged but the fact they do exist means that they fine companies who overcharge me to pay the fines anyway!

Vanishes in a puff of logic

 

[ShinyF1]

It sounds suspiciously like the anti-trust thing with Christie's/Sotheby's a few years ago.

Christie's blew the whistle and the directors escaped personal criminal sanction. They didn't escape the US customer led class action, which is exactly what Virgin will be on the receiving end of shortly......

With anti-collusion legislation now in place there will be much more of this. I work in the construction industry where several big names have been under investigation - I don't believe for one minute the OFT have been restricting themselves to construction though .... can you think of any other examples of what industries might be affected?

Watch the wires .... and be afraid

 

[ShinyF1]

I just heard the chairman of the OFT on the radio confirming that HM Treasury are the beneficiary of the fine.

There is also no requirement for any customer to suffer a loss for the OFT to act and impose a fine - just evidence of collusion.

Now if that rule applied to the current McLaren/Ferrari situation......guilty and punished without proof of loss/benefit......

 

[Gollom]

I just heard the chairman of the OFT on the radio confirming that HM Treasury are the beneficiary of the fine.

There is also no requirement for any customer to suffer a loss for the OFT to act and impose a fine - just evidence of collusion.

Now if that rule applied to the current McLaren/Ferrari situation......guilty and punished without proof of loss/benefit......

Ha!

Only a cynic would say that this is another stealth tax........

 

[ShinyF1]

US Justice Dept has just added £148m [$300m] to the OFT fine - OUCH!!!!

Apparently BA made a £350m provision, so on balance with a fine totalling £269m they got a result???!!!???

The class actions will soak up the further £80m without a hiccup

 

[crockers]

Ha!

Only a cynic would say that this is another stealth tax........

It isnt a stealth tax - it is a legitimate fine - and quite rightly so....

If this is passed on via ticket increases - then bear in mind air travel is highly competitive and if they add extra to a ticket they will lose customers - something they can not afford to do..

One would have thought that after the Laker incident that they had learnt their lesson...obviously not... at the end of the day it is the owners of the company that have to pay the fines (i.e. shareholders) and that will be through loss of profits and lower dividends...

 

[scumbag]

BA put Laker Skytrain out of business. It was Virgin who stuffed BA then gave the £3m fine to his employees.

I should imagine it will come out of the staff pension fund! Mind you, sooner we get rid of these big companies taking rich people about, we can have more low cost carriers, who, not having any competition, will shove the fares right up to make vast amounts of money,and still canceling the low paying routes, which companies like BA still operate.

RyanScare man did say he doesnt want business types in his planes,

hmmmm£7 to US

 

[Gollom]

It isnt a stealth tax - it is a legitimate fine - and quite rightly so....

I take your point

.....at the end of the day it is the owners of the company that have to pay the fines (i.e. shareholders) and that will be through loss of profits and lower dividends...

I like to think you are correct. Time will tell I guess

 

[crockers]

I should imagine it will come out of the staff pension fund!

This would be illegal and any trustee allowing this would be liable to be sued for the amount taken...Since Maxwell trustees have to have an independent trustee (an actuary) sitting in and he would never allow it - I am assuming you said this as a "joke"..

 

[scumbag]

- I am assuming you said this as a "joke"..

Yes, altho is was as funny as falling off a boat really! Sorry for my daft humour.