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UK Office of Fair Trading alleges competition infringements by Cathay Pacific, Virgin Atlantic

23-Apr-2010 8:34 AM

UK Office of Fair Trading issued (22-Apr-2010) a statement of objections alleging Cathay Pacific Airways and Virgin Atlantic have infringed competition law in relation to the London to Hong Kong route. The case concerns a number of alleged contacts between employees of the airlines over a number of years. It is alleged these contacts were intended to coordinate the parties' respective pricing strategies regarding fares, through the exchange of commercially sensitive information on pricing and other commercial matters. The matter was brought to the OFT's attention by Cathay Pacific under the OFT's leniency policy, where the first company to report participation in cartel conduct may qualify for immunity. Provided it continues to cooperate, Cathay will be immune from any penalty. [more]