ABSTRACT
At a time when outsourcing was becoming a feature, Virgin Atlantic outsourced its on-line flight booking to a part of BA [British Airways]. BA took the opportunity to ‘divert’ prospective Virgin customers to BA. The problem led to acrimonious litigation in 1994. The outsourcing contract had not anticipated the risk of ‘diversion’ of customers or that there might be divided loyalties on the part of staff.
