VS are mentioned as helping with enquiries but refusing to confirm if they were also under investigation.
Story Here.
Phil
Story Here.
Phil
The OFT always start investigations with what they call 'dominant players'.
In this instance I would be very surprised to find that BA are given anything but a clean bill of health on this. Most large companies are well aware of the 10% worldwide sales fine that could apply and there would be many levels of corporate guidelines and sign offs that would protect against an individual or small group of people putting the company in danger of prosecution. It does however fire a warning shot to the industry. I can just picture the many 'huddle' meetings going on at short notice across the industry.
With regards to fuel, perhaps the OFT should investigate the treasury as the % of fuel tax the motorist pays at the pumps is criminal [:w]
In this instance I would be very surprised to find that BA are given anything but a clean bill of health on this. Most large companies are well aware of the 10% worldwide sales fine that could apply and there would be many levels of corporate guidelines and sign offs that would protect against an individual or small group of people putting the company in danger of prosecution. It does however fire a warning shot to the industry. I can just picture the many 'huddle' meetings going on at short notice across the industry.
With regards to fuel, perhaps the OFT should investigate the treasury as the % of fuel tax the motorist pays at the pumps is criminal [:w]
I'm not presuming guilt, but nor should we assume innocence, after all the threat of prison and fines didn't put of Christies and Sothebys? Let's see how this pans out ...
There's a plane at JFK, to fly you back from far away
all those dark and frantic transatlantic miles
all those dark and frantic transatlantic miles
Just seems like propaganda to me - just think about it, the OFT seems to be an essentially toothless set up - just think about what else it's been investigating this week - water companies for example, chalking up profits on over 30%, while having hiked prices to customers and allowed leakage to get far worse.. ah yes, bit brother OFWAT won't actually DO anything about that either. Call me cynical, but I think they get back handers....[:I]
Originally posted by ChuckC
Yes, I'm afraid that's too true, Nick. US evening news broadcast on National Public Radio made it plainer, indicating that VS is one of the carriers being investigated.
Chuck-
The story I read in the UK referred specifically to BA and AA being investigated - obviously because they are in alliance transatlantically. VS are outside of this but I'd be surprised if VS wasn't being looked at, there have been many posts here about the similarity between VS and BA ticket prices, however that's surely simply down to mirroring.
There's a plane at JFK, to fly you back from far away
all those dark and frantic transatlantic miles
all those dark and frantic transatlantic miles
Originally posted by slinky09Originally posted by ChuckC
Yes, I'm afraid that's too true, Nick. US evening news broadcast on National Public Radio made it plainer, indicating that VS is one of the carriers being investigated.
Chuck-
The story I read in the UK referred specifically to BA and AA being investigated - obviously because they are in alliance transatlantically. VS are outside of this but I'd be surprised if VS wasn't being looked at, there have been many posts here about the similarity between VS and BA ticket prices, however that's surely simply down to mirroring.
slinky,
Believe that United was also mentioned.
Chuck-
Well from what I have heard- BA and VS are being looked at- as is AA and UA....its the fuel charge where the fixing seems to be rather than the prices. Skyteam are being looked at by the EU- and Star and Oneworld are "helping investigations".
What is interesting is the OFT seem to have been doing alot of busting on "cartels" of this sort- only recently the top 30 British Public Schools (For the americans- private boarding schools) have been investigated for all fixing their fees. Couple this with Sotherbys/Cristies as was mentioned earlier and there has been a fair amount of it lately that has been brought to the attention of the public.
What is interesting is the OFT seem to have been doing alot of busting on "cartels" of this sort- only recently the top 30 British Public Schools (For the americans- private boarding schools) have been investigated for all fixing their fees. Couple this with Sotherbys/Cristies as was mentioned earlier and there has been a fair amount of it lately that has been brought to the attention of the public.
and the anticipated class action although apparently including VS.
Originally posted by catsilversword
Just seems like propaganda to me - just think about it, the OFT seems to be an essentially toothless set up[:I]
Don't think the OFT could ever be described as toothless..... As a well known 'cola' company found to their cost in recent years.
The powers the OFT have are huge and any company who faces an investigation on whatever scale will always take it extremely seriously..... After all there is a possibility of a 10% fine in global sales revenue (not just profits)
You would be surprised at the level of controls from the very top downwards that large companies now have in place to ensure that they don't deliberately or inadvertently breach the regulations.
You would have to be a very brave (or stupid) CEO to risk the penaltly
Jon B
Steve Ridgway was interviewed on BBC Breakfast at 7:35 (ish) this morning and refused to confirm or deny that it was VAA who reported the alledged price fixing over fuel surcharges to the OFT. He would only say VAA were cooperating fully with the investigation!
Other than that he was fairly bullish over their performance and confirmed all VAA staff would get a bonus equiv to to weeks pay.
Other than that he was fairly bullish over their performance and confirmed all VAA staff would get a bonus equiv to to weeks pay.
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