UK probe could lead to BA fare reduction
Tourism and Transport Minister Dr. Ewart Brown said it would be fine with him if an investigation into alleged price fixing by British Airways meant lower fares to London.
British Airways (BA) announced in London on Thursday that the UK Office of Fair Trading (OFT) and the US Department of Justice (DOJ) were investigating ?alleged cartel activity? involving it and other airlines in relation to pricing of passenger air transportation, including fuel surcharges.
BA have long enjoyed a monopoly on direct flights from Bermuda to London, however, Tourism and Transport Minister Dr. Ewart Brown said while the investigation was interesting, he doubted if Bermuda could do little but observe developments over the coming months.
?We remain concerned about the high BA fares from London to Bermuda,? Dr. Brown said. ?If this investigation leads to a fare reduction, it would be fine with us.?
The UK?s Office of Fair Trading (OFT) confirmed in a statement to this newspaper that it was conducting both criminal and civil investigations into an alleged price coordination by airlines in relation to fuel surcharges for long haul passenger flights to and from the UK.
?The OFT?s investigation is at an early stage. No assumption should be made that there has been an infringement of competition law? it said.
The OFT will not be in a position to conclude whether the law has in fact been infringed until it has completed its investigations and assessed the available evidence? it said. ?The OFT?s civil investigation is being conducted under the Competition Act 1998 and Article 81 of the EC Treaty and the criminal investigation under the Enterprise Act 2002.?
In response to media inquiries, the American DOJ said it too was investigating alleged airline price fixing.
?The Antitrust Division is investigating the possibility of anti-competitive practices involving surcharges and rates for passenger fares and air cargo shipments,? DOJ spokeswoman Gina Talamona said.
In other aviation news, Airport General Manager James Howes said on Saturday that American Airlines, USAirways, and USA3000 have increased air service to Florida from Bermuda.
?In response to popular demand, American?s non-stop flight to Miami now operates daily except Tuesdays and Wednesdays, departing Bermuda 9.52 a.m. for excellent connections at American?s large Miami hub,? Mr. Howes said.
?In addition, US Airways has resumed its summer-only Saturday non-stop service to Orlando, which always attracts a heavy volume of Bermudians this time of year going to Walt Disney World and other Central Florida attractions.?
Another new development by low-cost carrier USA3000 is one-stop service to Ft. Myers from Bermuda on Fridays via Newark, the General Manager said.
