07/08/2008
BA Bosses Charged With Price Fixing
Four men have been charged with cartel offences in connection with a criminal investigation into price-fixing.
The Office of Fair Trading (OFT), which has brought the charges, say that the men are charged with price-fixing of fuel surcharges for long haul flights.
BA's Head of Sales Andrew Crawley and ex Commercial Director Martin George are due to appear before City of London Magistrates Court on 24 September.
Communications Head Iain Burns and Former UK and Ireland Sales Chief Alan Burnett will also stand before court.
Mr George and Mr Burns resigned from BA in 2006, while Mr Burnett retired in the same year.
The men are accused of "having dishonestly agreed with others to make or implement arrangements which directly or indirectly fixed the price for the supply in the UK of passenger air transport services by BA and Virgin Atlantic" between July 2004 and April 2006.
If convicted, the four could receive a prison sentence of up to five years, as well as an unlimited fine.
The OFT has already fined BA £121.5m for colluding with the rival airline on fuel surcharges at least six times between 2004-06 - the biggest ever imposed by the OFT for a breach of competition law.
In counterpoint, Virgin was granted immunity after bringing the matter to the attention of the OFT.
BA has also been fined $300 by the US Department of Justice over the matter after a guilty plea.
BA said that around 11 million passengers have been affected by the price fixing in the 21-month period.
Passengers who travelled on flights with either of the airlines during the relevant time period can apply for a refund worth about one-third of the fuel surcharge, via a special website.
Under competition law, tipping off a rival about a price change or agreeing a price, is illegal.
The OFT operates a leniency programme for companies and other individual who wish to confess to cartel conduct.
BA Chief Executive, Willie Walsh, said earlier this year that anti-competitive behaviour was "to be condemned".
(DS)
The Office of Fair Trading (OFT), which has brought the charges, say that the men are charged with price-fixing of fuel surcharges for long haul flights.
BA's Head of Sales Andrew Crawley and ex Commercial Director Martin George are due to appear before City of London Magistrates Court on 24 September.
Communications Head Iain Burns and Former UK and Ireland Sales Chief Alan Burnett will also stand before court.
Mr George and Mr Burns resigned from BA in 2006, while Mr Burnett retired in the same year.
The men are accused of "having dishonestly agreed with others to make or implement arrangements which directly or indirectly fixed the price for the supply in the UK of passenger air transport services by BA and Virgin Atlantic" between July 2004 and April 2006.
If convicted, the four could receive a prison sentence of up to five years, as well as an unlimited fine.
The OFT has already fined BA £121.5m for colluding with the rival airline on fuel surcharges at least six times between 2004-06 - the biggest ever imposed by the OFT for a breach of competition law.
In counterpoint, Virgin was granted immunity after bringing the matter to the attention of the OFT.
BA has also been fined $300 by the US Department of Justice over the matter after a guilty plea.
BA said that around 11 million passengers have been affected by the price fixing in the 21-month period.
Passengers who travelled on flights with either of the airlines during the relevant time period can apply for a refund worth about one-third of the fuel surcharge, via a special website.
Under competition law, tipping off a rival about a price change or agreeing a price, is illegal.
The OFT operates a leniency programme for companies and other individual who wish to confess to cartel conduct.
BA Chief Executive, Willie Walsh, said earlier this year that anti-competitive behaviour was "to be condemned".
(DS)
Related UK National News Stories
Click here for the latest headlines.
05 August 2011
E.ON Increase Prices
E.ON has today announced that it will increase its prices by 11.4% for electricity and 18.1% for gas, with dual fuel customers seeing a rise of 15.2%, effective from 13th September.
E.ON Increase Prices
E.ON has today announced that it will increase its prices by 11.4% for electricity and 18.1% for gas, with dual fuel customers seeing a rise of 15.2%, effective from 13th September.
24 August 2007
BA Fined In US For Price Fixing
British Airways has been fined £150 million for its part in price fixing fare surcharges. US investigators found BA had held talks with Virgin Atlantic over surcharges for transatlantic flights to cover rising fuel costs.
BA Fined In US For Price Fixing
British Airways has been fined £150 million for its part in price fixing fare surcharges. US investigators found BA had held talks with Virgin Atlantic over surcharges for transatlantic flights to cover rising fuel costs.
24 June 2005
British Airways announces ticket price rises
British Airways (BA) has announced an increase in fuel surcharge on ticket prices, due to increasing oil price rises. The longhaul fuel surcharge will increase to £48 per return trip, while the surcharge for shorthaul flights will rise to £16 for a return trip, for all tickets purchased from June 27.
British Airways announces ticket price rises
British Airways (BA) has announced an increase in fuel surcharge on ticket prices, due to increasing oil price rises. The longhaul fuel surcharge will increase to £48 per return trip, while the surcharge for shorthaul flights will rise to £16 for a return trip, for all tickets purchased from June 27.
09 August 2004
BA increases fuel surcharge on longhaul flights
British Airways have increased the fuel price surcharge on longhaul flights to £12 for a return ticket as a result of the continuing increase in the price of oil, the company has announced. Effective from Wednesday, the surcharge will rise from £2.50 per sector to £6 per sector (£12 return trip) on all new bookings made in the UK.
BA increases fuel surcharge on longhaul flights
British Airways have increased the fuel price surcharge on longhaul flights to £12 for a return ticket as a result of the continuing increase in the price of oil, the company has announced. Effective from Wednesday, the surcharge will rise from £2.50 per sector to £6 per sector (£12 return trip) on all new bookings made in the UK.
09 October 2006
BA officials quit over fuel price investigation
Two British Airways officials have resigned in the middle of an investigation into the alleged price-fixing of fuel surcharges. Commercial Director Martin George and head of communication Iain Burns have both been on leave of absence since the investigation - by the Office of Fair Trading and the US Justice Department - was launched.
BA officials quit over fuel price investigation
Two British Airways officials have resigned in the middle of an investigation into the alleged price-fixing of fuel surcharges. Commercial Director Martin George and head of communication Iain Burns have both been on leave of absence since the investigation - by the Office of Fair Trading and the US Justice Department - was launched.