BRITISH AIRWAYS' alleged abuse of a market "monopoly" position can now be challenged by Virgin Atlantic Airways under US anti-trust laws, following a ruling by the US District Court.
The Court, which took eight months to decide, ruled that only three out of eight complaints by Virgin, could be pursued under anti-trust law. Among those, which were thrown out was one, which challenged the market advantage gained from BA's shareholding in USAir.
The next phase of the legal battle will challenge BA's alleged unfair trade practices in the exploitation of a monopoly position in the US-UK market, and at London Heathrow and London Gatwick airports. Virgin also accuses BA of unreasonable restraint of trade through its corporate travel contracts and other promotional policies.
In January 1993, Virgin chairman Richard Branson won a libel-damages action against BA, in which BA admitted that some of its employees had pursued "regrettable" trade practices against Virgin. Branson had made it clear at the time, however, that he wanted compensation from BA for loss of business resulting from its unfair activities.
Virgin says that it is delighted that a US Court has decided that BA has a case to answer.
Source: Flight International
