Charity loses legal bid for BA / Virgin refunds
07.05.08
Hopes that millions of pounds of UK air passengers' unclaimed refunds would go to charity have been dashed by a US court. The head of Sussex, Surrey and Kent Air Ambulance lost his legal battle over the air fuel surcharge price fixing scandal, but failed to win the case.
British Airways and Virgin Atlantic were found guilty of price-fixing between August 2004 and March 2006. They set aside over £70m for refunds to UK customers, but cannot choose to give unclaimed cash to charity as in the US.
David Philpott wanted compensation money not taken up by UK passengers to be passed onto the Association of Air Ambulance Charities, of which he is chairman, and the British Disabled Flying Association. He challenged the ruling at a US district court, but was told the current agreement could not be changed.
If about half of the UK passengers affected by the price-fixing failed to make a claim, the charities could have gained up to £40m. However, a judge at the District Court of Northern California said he recognised the ‘merits of the intervention’ but had no discretion to amend an agreement which the airlines had already entered into.
Mr Philpott added: ‘On a positive note, however, we have opened up discussions with one of the airlines involved with a view to a substantial donation possibly being made out of these funds to the AAAC.'
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