NCAA vs BA/Virgin Latest: We are Appealing The $100million Fine, We Have Done Nothing Wrong – Virgin Atlantic

As the administrative panel set up by Nigeria Civil Aviation Authority, NCAA, to look into the legality and fairness  of the compensation fine slammed on British carriers commences work, one of the airlines, Virgin Atlantic Airways, declared, yesterday, it committed no offence to warrant such treatment.

The NCAA had, prior to the creation of the panel, asked Virgin Atlantic to pay $100 million compensation to Nigerian travellers, being cost of  “illegal” fuel surcharge imposed by the airline.  Another British carrier, British Airways, was fined $135 million for the same offence.

Virgin Atlantic Airways’ representative in Nigeria, Chief John Adebanjo, said the airline had always operated within the confines of the law, wondering how the fine came about. He said the airline would wait for the outcome of the administrative panel to determine what next to do.

Adebanjo said: “We have done nothing wrong; the whole thing came to us as a surprise.  We have appealed against it, and we are glad that the NCAA has set up a panel to look into the issue.  We have appeared before that panel, but I wouldn’t like to comment further since the issue is being handled at a higher level.”

Asked why Nigerians are made to pay more for less distance, compared to their Ghanaian counterparts who travel longer distance to London from Accra, Adebanjo said several factors were responsible for the development.

Adebanjo, who questioned the rationale behind revisiting an issue that occurred six years ago, said the cost of fuel and taxes were higher in Nigeria than Ghana. He said the airline was ready to abide by the directive of the NCAA, being the regulatory agency, but declined to state whether it would pay the $100 million fine. “We respect the NCAA, like we have done everywhere we have operated.  But we cannot comment further on this issue as it is before the panel,” he said.

Accusing both British carriers of price fixing, the NCAA had stated:  “After a long, painstaking, thorough and comprehensive investigation spanning approximately half a year of some conduct by British Airways (BA) and Virgin Atlantic Airways , VAA, the NCAA has concluded that both airlines violated Nigerian law, exploited Nigerian consumers and have remained adamant about whether those consumers should be compensated, even when confronted with the fact that they are already compensating similar consumers in Britain, their home country and the United States.

“This investigation over a period of six months gathered information from other authorities, different courts in the United States and Canada, BA, VAA, travel agents, NCAA database and other sources, interviewed over a dozen witnesses, including officials of both airlines and their service providers.

“After reviewing over well over 10,000 pages of documents, over 650 pages of transcribed witness testimonies and representations made by and on behalf of BA and VAA, the NCAA concludes that BA and VAA have engaged in unfair and deceptive practices against Nigerian consumers, the downstream aviation sector in Nigeria and the Federal Government of Nigeria.

“In addition, both airlines engaged in unfair methods of competition. Starting sometime in 2004 and continuing to 2006, BA and VAA colluded and started a conspiracy to fix, periodically increase and maintain Passenger Fuel Surcharges (PFS) as a component of the fare passengers pay to travel.

“This collusion and conspiracy was ultimately discovered and became the subject of investigation in the US and UK and several class actions to protect consumers.”