BA chiefs face charges over price-fixing

Trading chiefs are close to announcing charges against current and former British Airways executives over price-fixing on fuel surcharges.

UK and US authorities have already fined BA a total of around £270m (€340m) over the fuel surcharge offences which took place between August 2004 and January 2006.

The UK’s Office of Fair Trading (OFT) is now poised to bring individual charges, with an announcement possibly being made tomorrow.

It is believed that the charges will be brought against BA head of sales Andrew Crawley, former commercial director Martin George, former communications head Iain Burns and former UK and Ireland sales chief Alan Burnett.

Mr George and Mr Burns resigned from BA in 2006, while Mr Burnett retired in the same year.

The four are part of a group of 10 past and present BA staff who have been refused immunity under a plea agreement between the airline and the US Department of Justice (DoJ) over the price-fixing.

The OFT fined BA £121.5m (€153.4m) million for colluding with Virgin Atlantic Airways on fuel surcharges on at least six occasions in the period 2004-06.

Virgin was granted immunity after bringing the matter to the attention of the OFT.

BA was also fined $300m US (€193m) by the DoJ. In February this year, BA and Virgin agreed to settle a US class-action lawsuit which a firm representing plaintiffs said could see the two carriers paying more than £100m (€126m) to passengers affected by the price-fixing.

BA has said that about 11 million passengers, including seven million in the UK, were affected.

BA chief executive Willie Walsh said earlier this year that “any anti-competitive behaviour is to be condemned at BA or at other companies”.

Neither the OFT nor BA would comment today.