British Airways today released for the first time full details of the conversations held with Virgin Atlantic in the past three years over the fuel-surcharge.

Introduction of the surcharge May 2004

1. The introduction by each of British Airways and Virgin Atlantic of the long-haul passenger fuel surcharge (“PFS”) in May 2004 is not alleged to have been the subject of collusive contacts.

First Increase, August 2004

2. BA and Virgin exchanged information on Friday 6 August 2004 regarding the intentions of their respective organisations to increase the PFS. BA told Virgin of BA's intention to increase its PFS to £6.

3. Thereafter, on Monday 9 August 2004, both BA and Virgin announced increases in their respective PFS to £6, as they had discussed, with effect from 11 August 2004.

Second Increase, October 2004

4. BA understands that there may have been attempts by Virgin to contact BA prior to the second increase, but these were not successful.

5. BA announced on 8 October 2004 an increase in its PFS to £10. Virgin announced a corresponding increase in its PFS to £10 on the same date.

Third Increase, March 2005

6. In two sets of calls on 21 March 2005, BA and Virgin exchanged information concerning proposed increases in their respective organisations' PFS. BA informed Virgin that BA intended to increase its PFS to £16.

Virgin confirmed to BA the timing and amount of the PFS increase which Virgin was going to announce.

7. Later on 21 March 2005 Virgin announced to the press an increase in its PFS to £16 with effect from 24 March, as had been discussed.

On the following day, BA announced an increase in its PFS by the same amount with effect from 28 March 2005.

Fourth Increase, June 2005

8. BA informed Virgin on 23 June 2005 that BA was going to announce the following morning an increase in its PFS to £24.

9. On Friday 24 June 2005 BA announced an increase in its PFS to £24, as BA had informed Virgin, with effect from 27 June 2005. Later the same day, Virgin announced an identical increase in its PFS to £24.

10. An email was sent from Virgin to BA shortly before Virgin’s announcement, to which BA replied early the following morning.

Fifth Increase, September 2005

11. On 5 September 2005, Virgin informed BA during a telephone call that Virgin intended to increase its PFS and to be the first to announce the increase on this occasion.

It is likely that Virgin informed BA that Virgin would increase its PFS specifically to £30.

12. On 6 September 2005 Virgin announced an increase in its PFS to £30 with effect from 7 September, as Virgin had informed BA. On 8 September 2005, BA announced an increase in its PFS to £30, with effect from 12 September 2005.

Virgin Reduction, November 2005

13. Virgin informed BA on 18 November 2005 that Virgin was about to announce a reduction in its PFS to £25.

14. Shortly afterwards, Virgin announced a reduction in its PFS to £25, as Virgin had informed BA.

15. A further contact from Virgin to BA relating to this reduction took place following the announcement.

Virgin Increase, January 2006

16. Virgin informed BA on 6 January 2006 that VAA intended to increase its PFS to £30.

17. Later that same day Virgin announced an increase in its PFS to £30, as Virgin had forewarned BA. BA did not adjust the level of its PFS in response.

Source: British Airways/Office of Fair Trading

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