British Airways loses appeal

Published March 16, 2007

BRUSSELS, March 15: British Airways on Thursday lost its appeal against an EU court decision to fine the company 6.8 million euros ($9m) for abusing its dominant market position in Britain.

The European Court of Justice turned down the appeal, which originated from a complaint by rival Virgin Atlantic Airways in the 1990s, ruling that it was “in part inadmissible and in part unfounded,” a court statement said.

Virgin originally lodged its complaint with the EC over BA's agreements with travel agents concerning commissions and other financial incentives for the sale of BA tickets.

BA subsequently adopted a new performance reward scheme from 1998 but Virgin still cried foul and lodged a second complaint with the EU competition watchdog.

In July 1999, the Commission condemned BA's deals as an abuse of its dominant position on the British market and imposed the 6.8 million euro fine.—AFP

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