Business
Nigeria fines British Airways and Virgin Atlantic $235 million
Nigerian airport officials have fined British Airways (BA) US$135 million and Virgin Atlantic (VAA) US$100 million amid a dispute over ticket prices, the country’s civil aviation authority said Thursday.
Harold Demuren, head of the authority, told AFP the fines were “US$135 million against BA, US$100 million against Virgin Atlantic ….,” alleging overcharging on tickets.
He said the airlines had received notice of the fines on Tuesday and were given 14 days to respond.
“In addition, they must compensate all those passengers,” Demuren said.
A statement from the aviation authority confirmed the fines and alleged the two airlines had colluded on fares.
“BA and VAA did in fact collude, and in furtherance of that collusion periodically increased (passenger fuel surcharges), including against Nigerians,” the statement said.
“BA and VAA operate approximately 90 percent of the direct flights between Nigeria and the UK.
“Being a duopoly, the effect of this collusion was and continues to be devastating on Nigerian travellers who have limited choices and have had to and continue to pay indiscriminately high fares.”
It said the authority had “concluded that both airlines violated Nigerian law, exploited Nigerian consumers and have remained adamant about whether those consumers should be compensated …”
British Airways disputed the claims and said it would defend itself.
