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British Airways Frequent Flyer Club Members Receive Preliminary Approval for $27M Settlement

Elizabeth DiNardo, Esq. | Associate Counsel

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On May 29, 2018, Eastern District of New York Federal Magistrate Cheryl L. Pollak granted preliminary approval of a $27 million class settlement between British Airways and a class of British Airways Executive Club members. 

The suit was filed in November 2012 with class certification granted in March 2017 by U.S. District Judge Raymond J. Dearie. The case involves the British Airways Executive Club program contract that was in effect from November 9, 2006 through April 17, 2013. Plaintiffs allege that the contract subjected Executive Club members to unreasonably high fuel surcharges that did not directly correlate with actual gas prices. In court documents, the plaintiffs argue that the surcharges are based on British Airways’ cost of fuel in 2003-2004.

The settlement is comprised of two parts: British Airways frequent miles and a separate cash settlement. Former Executive Club members are only eligible to receive cash settlements. Current Executive Club members will automatically receive British Airways frequent flyer miles in their British Airways accounts. British Airways has agreed to credit approximately 2,228,677,500 frequent flyer miles to the settlement, which would equate to about $63 million. Current Club members may also receive a cash settlement if they file a written election for the cash option. The cash option will pay class members 16% of the total fuel surcharges that class members incurred during 2006-2013. The final approval hearing has been scheduled for July 27, 2018. 

The case is: Dover et al. v. British Airways PLC, Case No.:1:12-cv-05567, in the U.S. District Court for the Eastern District of New York.

 


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