Executives face charges over BA price-fixing case

Monday, 12th April 2010

A British Airways employee and three men who formerly worked for the airline are to be charged with price fixing. The men are accused of agreeing with Virgin Atlantic to fix fuel surcharges between 2004 and 2006. All four of the men deny doing anything wrong.

The case grows out of a joint investigation by the US Department of Justice and the UK’s Office of Fair trading that started in the middle of 2006 and led to British Airways being fined a total of £270 million.

Over a year and a half, the surcharge on passenger and cargo services to cover rising fuel prices increased dramatically. On a typical long-haul return passenger fare, the levy went up from £5 to £60.

Andrew Crawley, BA’s current head of sales, is set to appear in Southwark Crown Court. Martin George, BA’s former commercial director, Ian Burns, former head of communications at BA, and Alan Burnett, who was in charge of sales for the UK and Ireland, will also appear.

The men were earlier accused by the court of agreeing to dishonest arrangements that led to fixed prices for UK passenger air-transport services supplied by BA and Virgin Atlantic.

Staff at Virgin Atlantic are receiving immunity from prosecution because they informed the OFT of the illegal agreement.

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