British Airways has been fined R21,7 million by the South African Competition Tribunal on charges of colluding with Virgin Atlantic to ‘fix’ the fuel surcharge on flights between South Africa and the UK. 
According to a consent order, in 2008 the Competition Commission initiated an investigation into the airlines and found that between August 2004 and January 2006, BA and Virgin Atlantic “participated in an agreement and/or concerted practice by which they co-ordinated their pricing in relation to their respective fuel surcharge rates to passengers travelling on the United Kingdom to South Africa routes and vice versa, through the exchange of pricing and other commercially sensitive information” in contravention of the Competition Act.
In 2012 the Commission referred the matter to the Competition Tribunal for adjudication, which saw the airline enter into settlement negotiation with the Commission. BA admitted to colluding with Virgin Atlantic to fix the fuel surcharges on the flights during the stipulated period. It also agreed to refrain from participating in this type of conduct in future and initiated a compliance programme designed to ensure that the relevant employees and directors were informed of and complied with their obligations under competition law and the provisions of the Competition Act. 
These terms were over and above the R21 765 297 “administrative penalty” the airline agreed to pay. According to the consent order, this amount does not exceed 10% of BA’s annual turnover into or from SA in its 2011 financial year. 

Stephen Forbes, Spokesperson for BA, told Tourism Update: “We are pleased that this matter, which concerned unauthorised unlawful conduct taking place more than eight years ago, is settled.”
Virgin Atlantic’s press office said it was aware of the hearing between BA and the South African authorities but suggested any further questions surrounding Virgin’s involvement be directed to the Commission. 
According to Nazeera Mia, an associate in the competition practice at Cliffe Dekker Hofmeyr, BA reached a similar settlement agreement with the Commission in 2012. The complaint then was linked to British Airways World Cargo for exchanging commercially sensitive information with other air cargo carriers. “The exchange of information resulted in fixing the fuel surcharges in the international market for air freight and/or cargo services. This conduct attracted an administrative penalty of £871 116.50 (R15,5m),” she said.