22/06/2006

BA investigated over allegations of price fixing

British Airways is being investigated over allegations of price fixing over fuel surcharges on long-haul flights to and from the UK, it has been revealed.

BA announced that that a joint investigation between the Office of Fair Trading in the UK and the US Department of Justice was taking place and said that it was co-operating with the inquiry.

The airline also confirmed that its commercial director, Martin George, and head of communications, Iain Burns, had been given leave of absence during the investigation.

BA said that other airlines were also being investigated.

Virgin Atlantic and American Airlines have reportedly confirmed that they are assisting in the investigation, while a number of other airlines, including United Airlines, Continental Airways, bmi and Ryanair said that they were not being investigated.

BA's current fuel surcharge is £35 for each long-haul flight and £37 for a return ticket.

The OFT said that its investigation was at an early stage. In a statement, the OFT said: "No assumption should be made that there has been an infringement of competition law. The OFT will not be in a position to conclude whether the law has in fact been infringed until it has completed its investigation and assessed the available evidence."

(KMcA/SP)

Related UK National News Stories
Click here for the latest headlines.

01 November 2010
Jet Threat Security Warning Issued
Security experts have said that a hasty 'knee-jerk reaction' would not prevent future attacks on planes. The statement comes after a parcel bomb was allowed onto a freight plane at the UK's East Midlands Airport.
07 January 2004
Talks continue over controversial sky marshals plan
The British Airline Pilots’ Association (Balpa) has urged the adoption of a 'Gold Standard' for the armed sky marshals on UK flights, a move that would give the pilot responsibility as to how the marshal is deployed.
07 August 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.
19 April 2012
British Airways Fine Cut By More Than Half
A fine imposed on British Airways for price-fixing has been cut by over half by the Office of Fair Trading (OFT). The original fine, imposed in 2007, was £121.5m, but the OFT has reduced that to £58.5m. The reduction is said to reflect recent legal developments over fines and BA's co-operation in the case.
07 November 2008
BA Announces Profits Slump During 'Bleakest' Six Months
British Airways have announced a 91.6% drop in its half year profits in a period which has been described as "one of the bleakest on record". Pre-tax profits of £52 million plummeted from £616 million last year in the six months to September 30. The Heathrow-based airline carrier revealed the massive drops were a result of the surge in oil prices.