EUROPE

UK Passengers Can Claim Airline Refund

UK-based airline passengers who took transatlantic flights with British Airways and Virgin Atlantic between 2004 and 2006 can claim refunds for overcharges under a US settlement, after a challenge to the validity of the settlement was resolved.

The challenge was settled last week. It means UK customers can begin receiving payments from the £73.5 million pool from as early as next month.

The original agreement (worth US$204 million in total) was concluded last year, and is the first collective settlement of its kind for UK customers. It followed fines of £121.5 million and US$300 million issued against British Airways in 2007 by the UK's Office of Fair Trading and the US Department of Justice, respectively, for fixing the price of fuel surcharges with Virgin Atlantic and thereby increasing the cost of airline tickets.

Virgin Atlantic escaped a fine, after applying for immunity, but is liable for payments relating to the class action.
Three UK citizens challenged the validity of the UK parts of the settlement in the District Court for the Northern District of California, arguing that the US courts should not have taken jurisdiction over UK claims. The objection was initially rejected by the US court, following which the objectors launched an appeal against the decision.

"Since we announced this settlement over 100,000 individuals and businesses have applied for refunds, which were due to be processed in the last quarter of 2008," says Michael Hausfeld, partner at Hausfeld LLP and counsel to the plaintiffs in the case. "Whilst disappointed that this unprecedented objection had been raised in the first place, we are pleased that a settlement has now been reached with the objectors meaning that refunds will now be processed promptly."

Customers seeking refunds have until December 2012 to make their claims.

Counsel for Plaintiffs
Hausfeld LLP/ Hausfeld & Co.
Partner Michael Hausfeld in Washington, DC, and partner Anthony Maton in London

Counsel to Virgin Atlantic
Simpson Thacher & Bartlett LLP
Partner Charles Koob in New York.
Counsel to British Airways

Sullivan & Cromwell LLP
Partner Daryl Libow in Washington, DC.
 

Practice Areas: Antitrust / Competition