Class action case over fuel surcharge results in Avios distribution (US members only)
May 31, 2018, 7:10 pm
#1
Community Director Emerita
Original Poster
Join Date: Oct 2000
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Class action case over fuel surcharge results in Avios distribution (US members only)
I just received an email saying that agreement has been reached in a fuel surcharge class action lawsuit filed in the US.If you have redeemed British Airways Plc’s frequent flyer miles for an award ticket and paid a fuel surcharge, you may be eligible for benefits from a class action settlement.
· A Settlement has been reached in a class action lawsuit. In the lawsuit, Plaintiffs alleged that British Airways Plc (“BA”) breached its contract (the “EC Contract”) with members (“Settlement Class Members”) of its frequent flyer program (the “Executive Club”) because its fuel surcharges charged on reward flights were not reasonably related to the price or cost of fuel. BA maintains that the EC Contract permitted it to charge a fuel surcharge, denies that its fuel surcharges were not reasonably related to the price or cost of fuel, denies that it breached the EC Contract, and denies that it did anything wrong. · The United States District Court for the Eastern District of New York (the “Court”), which is overseeing this lawsuit (the “Litigation”), has not decided who is right. Instead, the parties agreed to a compromise. Defined terms (with initial capitals) used herein and not otherwise defined have the same meaning as set forth in the Settlement Agreement. · BA’s current airline fares, taxes, and fees are not implicated by the allegations in the Litigation and not at issue in the Litigation.
Trying to winnow out key points of interest:
The Settlement only impacts you if you are a Settlement Class Member. A Settlement Class Members is a United States resident Executive Club member who redeemed frequent flyer miles (“Avios”) for an award ticket from November 9, 2006 through April 17, 2013 (the “Class Period”), who paid a BA-imposed fuel surcharge, and who provided BA with a valid United States address at the time of booking.
If you are an Active Executive Club Member, you will automatically receive between 12,500 and 35,000 Avios (depending on how many times you redeemed Avios during the Class Period as set forth below) unless you choose a cash payment (“the Cash Option”).
If you want cash rather than Avios, you must file a claim by 29 July 2018. Otherwise, no action is needed.
You can read more details at Home .
· A Settlement has been reached in a class action lawsuit. In the lawsuit, Plaintiffs alleged that British Airways Plc (“BA”) breached its contract (the “EC Contract”) with members (“Settlement Class Members”) of its frequent flyer program (the “Executive Club”) because its fuel surcharges charged on reward flights were not reasonably related to the price or cost of fuel. BA maintains that the EC Contract permitted it to charge a fuel surcharge, denies that its fuel surcharges were not reasonably related to the price or cost of fuel, denies that it breached the EC Contract, and denies that it did anything wrong. · The United States District Court for the Eastern District of New York (the “Court”), which is overseeing this lawsuit (the “Litigation”), has not decided who is right. Instead, the parties agreed to a compromise. Defined terms (with initial capitals) used herein and not otherwise defined have the same meaning as set forth in the Settlement Agreement. · BA’s current airline fares, taxes, and fees are not implicated by the allegations in the Litigation and not at issue in the Litigation.
Trying to winnow out key points of interest:
The Settlement only impacts you if you are a Settlement Class Member. A Settlement Class Members is a United States resident Executive Club member who redeemed frequent flyer miles (“Avios”) for an award ticket from November 9, 2006 through April 17, 2013 (the “Class Period”), who paid a BA-imposed fuel surcharge, and who provided BA with a valid United States address at the time of booking.
If you are an Active Executive Club Member, you will automatically receive between 12,500 and 35,000 Avios (depending on how many times you redeemed Avios during the Class Period as set forth below) unless you choose a cash payment (“the Cash Option”).
If you want cash rather than Avios, you must file a claim by 29 July 2018. Otherwise, no action is needed.
You can read more details at Home .
May 31, 2018, 10:19 pm
#4
Join Date: Apr 2005
Location: Portland, OR USA
Programs: BA Silver, Icelandair, IHG Diamond Elite Ambassador, Hertz 5*
Posts: 610
Interesting - I had a J redemption with a 2-4-1 SEA-LHR-ZRH in 2012
- note that, “The Settlement Class under the Settlement excludes:
(1) Executive Club Members who redeemed frequent flyer miles exclusively using BA’s “Cash + Avios” option;”
And, “when will the settlement go into effect?
The Court will hold a Final Approval Hearing on July 27, 2018 at 10:00 am Eastern Time to decide whether to approve the Settlement. Even if the Court approves the Settlement, there could be appeals. The time for an appeal varies, and could take more than a year.
The Effective Date is the date when all appeals are completed, and the Settlement becomes final. You can visit this website's Homepage periodically to check on the progress of the Court-approval process and the Effective Date. Please be patient.
Avios deposits and Cash Option checks will be issued no more than 30 days after the Effective Date. The Court will have the power to enforce the terms of the Settlement Agreement.
so it could be August or who knows when!
- note that, “The Settlement Class under the Settlement excludes:
(1) Executive Club Members who redeemed frequent flyer miles exclusively using BA’s “Cash + Avios” option;”
And, “when will the settlement go into effect?
The Court will hold a Final Approval Hearing on July 27, 2018 at 10:00 am Eastern Time to decide whether to approve the Settlement. Even if the Court approves the Settlement, there could be appeals. The time for an appeal varies, and could take more than a year.
The Effective Date is the date when all appeals are completed, and the Settlement becomes final. You can visit this website's Homepage periodically to check on the progress of the Court-approval process and the Effective Date. Please be patient.
Avios deposits and Cash Option checks will be issued no more than 30 days after the Effective Date. The Court will have the power to enforce the terms of the Settlement Agreement.
so it could be August or who knows when!
May 31, 2018, 10:20 pm
#5
Join Date: Jan 2007
Location: London, UK
Programs: BAEC Gold, AA Plat, Starwood Gold, AX Plat, Hertz Gold, Avis Preferred, Star Alliance Gold
Posts: 1,381
This is quite interesting. I recall being called by the attorneys many years ago about this class action lawsuit. They had wanted to include me as a class representative because I had redeemed so many miles, but then the subject of the case was restricted to redemptions only between LHR and NYC. I've never heard or seen anything about it again. To be clear, while the case focused narrowly on one route for award redemptions, it applies to all USA redemptions.
May 31, 2018, 10:25 pm
#6
Join Date: May 2000
Posts: 750
Wow, up to 35,000 avios for being charged hundreds if not thousands of dollars in excessive and patently fraudulent “fuel surcharges” even as the price of oil plummeted over a period of several years. I wonder who the real winners are here? Oh, look, it’s in the FAQ, under “how will the attorneys be paid?” “In connection with the Final Approval Hearing on the Settlement, Class Counsel will apply to the Court for an award of expenses and attorneys' fees, with the total amount not to exceed $3,750,000 in expenses and $11,095,000 in fees, which is approximately equal to twenty-nine (29) percent of the $42,000,000 total settlement consideration after deduction of expenses.” So those people who were duped by BA for years will get up to 35,000 Avios each and the lawyers will get $15,000,000.
May 31, 2018, 10:39 pm
#7
Join Date: Nov 2015
Programs: BA Gold
Posts: 166
Why is it limited to 2006-2013? Have the fuel surcharges gone down since then, or has the price of oil gone up so much that it's now closer to those surcharges? I don't think either of those are true.
Should we expect another class action in a few years covering the 2013-2020 period?
Should we expect another class action in a few years covering the 2013-2020 period?
May 31, 2018, 10:54 pm
#8
Join Date: Apr 2007
Location: The Far, Far North
Programs: Alaskans fly everywhere on any aircraft going there!
Posts: 1,262
What about those of us who paid loads of $ along with miles from AS and other carriers? Are we included in this or is it only for those using BA accounts? I've been redeeming miles from partner accounts for the last 10 or 11 years at least once a year and always in F...I don't think I've paid less that a $500 "charge" each way for any of them. I would prefer some cash to Avios but ....
May 31, 2018, 11:09 pm
#9
A FlyerTalk Posting Legend
Join Date: Jan 2002
Posts: 44,600
Why is it limited to 2006-2013? Have the fuel surcharges gone down since then, or has the price of oil gone up so much that it's now closer to those surcharges? I don't think either of those are true.
Should we expect another class action in a few years covering the 2013-2020 period?
Should we expect another class action in a few years covering the 2013-2020 period?
Jun 1, 2018, 12:33 am
#10
Ambassador, British Airways Executive Club, easyJet and Ryanair
Join Date: Sep 2011
Location: UK/Las Vegas
Programs: BA Gold (GGL/CCR)
Posts: 15,927
Why is it limited to 2006-2013? Have the fuel surcharges gone down since then, or has the price of oil gone up so much that it's now closer to those surcharges? I don't think either of those are true.
Should we expect another class action in a few years covering the 2013-2020 period?
Should we expect another class action in a few years covering the 2013-2020 period?
Because from that time YQ was no longer referred to as a ‘fuel surcharge’ it became known as ‘carrier fees’.
Last edited by Tobias-UK; Jun 1, 2018 at 1:08 am Reason: Quoted wrong post
Jun 1, 2018, 12:48 am
#11
Join Date: Apr 2009
Location: 787
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Posts: 1,306
Wow, up to 35,000 avios for being charged hundreds if not thousands of dollars in excessive and patently fraudulent “fuel surcharges” even as the price of oil plummeted over a period of several years. I wonder who the real winners are here? Oh, look, it’s in the FAQ, under “how will the attorneys be paid?” “In connection with the Final Approval Hearing on the Settlement, Class Counsel will apply to the Court for an award of expenses and attorneys' fees, with the total amount not to exceed $3,750,000 in expenses and $11,095,000 in fees, which is approximately equal to twenty-nine (29) percent of the $42,000,000 total settlement consideration after deduction of expenses.” So those people who were duped by BA for years will get up to 35,000 Avios each and the lawyers will get $15,000,000.
On top of that, they claim that my dealership bills do not show the repairs done. I had to highlight them and resend it via certified mail. So it almost looks like I will have to sue those who sued BMW to get at least $1K, yet the lawyers got about 20 million off the lawsuit.
Jun 1, 2018, 5:04 am
#12
Join Date: Aug 2005
Location: NYC, FLL
Programs: UA PP 1MM, Marriott Bonvoy LTTE, BA Gold
Posts: 6,324
Got the email overnight and I'm eligible too. I agree that 35,000 isn't much if you had quite a few award bookings, companion bookings as well. I have about 5 trips eligible I think - and 16.9% of the fuel surcharges for the cash option isn't great. Not sure what I'll do yet.
Not great Settlement terms, to be honest - but it's something.
Not great Settlement terms, to be honest - but it's something.
Jun 1, 2018, 6:25 am
#14
FlyerTalk Evangelist
Join Date: Mar 2005
Location: 60137
Posts: 10,498
Ms SOZ and I flew BA (LHR-FCO) six years ago using AVIOS.
Our experience was bad and we never used BA again.
Any cash we get from this settlement will be spent on another carrier.
Deal Karma is real.
Our experience was bad and we never used BA again.
Any cash we get from this settlement will be spent on another carrier.
Deal Karma is real.
Jun 1, 2018, 6:54 am
#15
Join Date: Oct 2007
Location: London
Programs: BA - Gold for Life, CCR & GGL; IC Spire Elite Ambassador; Diamond Hilton Honors; Hyatt Discoverist
Posts: 6,720
Some brief details on Head for Points:
https://www.headforpoints.com/2018/0...luation-alert/
To quote the initial paragraphs:
”If you lived in the United States between November 2006 and April 2013, you could be in line for a windfall following the proposed settlement of a class action lawsuit against British Airways over Avios redemptions.
The case – put simply – was that British Airways added surcharges to Avios redemptions in breach of Executive Club terms and conditions. Whilst these were called ‘fuel surcharges’ there was no proof that they bore any relation to changes in the cost of aviation fuel”.
The article raises the possibility of a devaluation as a consequence.
https://www.headforpoints.com/2018/0...luation-alert/
To quote the initial paragraphs:
”If you lived in the United States between November 2006 and April 2013, you could be in line for a windfall following the proposed settlement of a class action lawsuit against British Airways over Avios redemptions.
The case – put simply – was that British Airways added surcharges to Avios redemptions in breach of Executive Club terms and conditions. Whilst these were called ‘fuel surcharges’ there was no proof that they bore any relation to changes in the cost of aviation fuel”.
The article raises the possibility of a devaluation as a consequence.