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No Grounds for Action against Virgin Atlantic

14/12/12

On 14 December 2012, the OFT announced that it had decided to close its investigation into whether Cathay Pacific Airways and Virgin Atlantic infringed competition law in relation to passenger services on the London to Hong Kong route in the period 2002 to 2006.

The case was commenced in 2007 following a leniency application made by Cathay Pacific. It concerned a number of alleged contacts between employees of the two airlines which it was alleged had the object of coordinating the parties' respective pricing strategies regarding passenger fares through the exchange of commercially sensitive information on pricing and other commercial matters. In 2010 the OFT had sent the parties a Statement of Objections setting out the allegations and invited their representations. In light of the parties' representations, including those made at a oral hearing in February 2011, and having carried out a number of further investigative steps, the OFT concluded that there are no grounds for action in this case.

Helen Davies QC acted for Virgin Atlantic Airways, instructed by Herbert Smith.

Kelyn Bacon acted for the OFT.