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01/08/2007
BA Price-Fixing Fine Rises To £270m
The amount that British Airways has been fined for price-fixing on fuel surcharges for long-haul flights has risen to almost £270 million.
The US Department of Justice fined the airline almost $300 million (£148 million) which will be added to the £121.5 million fine handed to the company by the UK's Office of Fair Trading.
The fines relate to BA's collusion with Virgin Atlantic on fuel surcharges between August 2004 and January 2006. During that time, fuel surcharges on long-haul BA or Virgin Atlantic flights rose from £5 to £60.
BA admitted to the collusion and revealed in May that it had set aside £350 million to cover the cost of fines and legal action.
Virgin Atlantic was granted immunity after reporting the collusion and is not expected to pay a penalty.
The OFT and DOJ launched their investigation into the allegations last June. The fine brings the civil case against BA to an end, but a criminal investigation will continue into the conduct of individuals in the case. No conclusions have as yet been reached as to whether criminal proceedings against individuals can or should be brought.
BA's Chief Executive Willie Walsh said that passengers had not been overcharged, saying that fuel surcharges were "a legitimate way of recovering costs".
However, Mr Walsh also said that this did not excuse the behaviour of some of "a very limited number" of the airline's employees over the matter. He said: "Anti-competitive behaviour is entirely unacceptable and we condemn it unreservedly.
"We have a long standing competition compliance policy which requires all staff to comply with the law at all times. I am satisfied that we have the right controls in place. However, it is deeply regrettable that some individuals ignored our policy."
Philip Collins, OFT chairman, said: "This case, and the substantial penalty imposed, will send an important message to corporate boards and business leaders about our intention to enforce the law, and serves to remind companies of the substantial risks involved if they are found to engage in such behaviour."
(KMcA/SP)
The US Department of Justice fined the airline almost $300 million (£148 million) which will be added to the £121.5 million fine handed to the company by the UK's Office of Fair Trading.
The fines relate to BA's collusion with Virgin Atlantic on fuel surcharges between August 2004 and January 2006. During that time, fuel surcharges on long-haul BA or Virgin Atlantic flights rose from £5 to £60.
BA admitted to the collusion and revealed in May that it had set aside £350 million to cover the cost of fines and legal action.
Virgin Atlantic was granted immunity after reporting the collusion and is not expected to pay a penalty.
The OFT and DOJ launched their investigation into the allegations last June. The fine brings the civil case against BA to an end, but a criminal investigation will continue into the conduct of individuals in the case. No conclusions have as yet been reached as to whether criminal proceedings against individuals can or should be brought.
BA's Chief Executive Willie Walsh said that passengers had not been overcharged, saying that fuel surcharges were "a legitimate way of recovering costs".
However, Mr Walsh also said that this did not excuse the behaviour of some of "a very limited number" of the airline's employees over the matter. He said: "Anti-competitive behaviour is entirely unacceptable and we condemn it unreservedly.
"We have a long standing competition compliance policy which requires all staff to comply with the law at all times. I am satisfied that we have the right controls in place. However, it is deeply regrettable that some individuals ignored our policy."
Philip Collins, OFT chairman, said: "This case, and the substantial penalty imposed, will send an important message to corporate boards and business leaders about our intention to enforce the law, and serves to remind companies of the substantial risks involved if they are found to engage in such behaviour."
(KMcA/SP)
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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.
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.
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.
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.
12 November 2012
MPs To Vote On Fuel Rise Delay
MPs will vote on Monday evening on plans to increase fuel duty by 3 pence a litre in January. Labour have said "it would be wrong" to bring the new rise in s soon an want it delayed until at least April. Conservative MPs concerned about the cost of petrol said they believed Chancellor George Osborne was "in listening mode" over the issue.
MPs To Vote On Fuel Rise Delay
MPs will vote on Monday evening on plans to increase fuel duty by 3 pence a litre in January. Labour have said "it would be wrong" to bring the new rise in s soon an want it delayed until at least April. Conservative MPs concerned about the cost of petrol said they believed Chancellor George Osborne was "in listening mode" over the issue.
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.
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.
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