24/08/2007

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.

The $300 million (£150m) fine imposed on BA is somewhat less than expected as Federal Government had been pushing for more punitive fines on the airline over the scandal.

Former senior BA staff are also facing the prospects of a criminal trial in the US over the fiasco.

The UK's Office of Fair Trading recently fined BA £121 million after Virgin Atlantic blew the whistle on the scam.

The US court ruling may lead to BA, which hiked fuel surcharges from £5 to £60 in the period concerned, having to compensate US passengers.

(SP/KMcA)

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