U.K. Investigates Virgin Atlantic, Cathay Price Fixing

The U.K. Office of Fair Trading last week alleged Virgin Atlantic and Cathay Pacific Airways have been fixing passenger airfares "over a number of years" between home markets in London and Hong Kong, respectively.

OFT in a statement of objections accused unnamed employees from each carrier "of coordinating the parties' respective pricing strategies regarding passenger fares through the exchange of commercially sensitive information on pricing and other commercial matters."

Cathay Pacific brought the matter to OFT's attention, taking advantage of a leniency policy wherein the first company to report such antitrust practices "may qualify for immunity from penalties," OFT said, noting that Cathay's ongoing cooperation would be so rewarded.

"At this stage, it should not be assumed that the parties involved have broken the law," OFT said in its statement, noting that a determination would be made once it reviews responses to its allegations.