August 11th, 2008British Airways executives charged with price-fixing offences
Four British Airways executives have been charged with price fixing in collusion with Virgin Atlantic. They can face five years of imprisonment for involvement in fixing passenger fuel surcharges. The executives charged for the grave offences include Martin George, former director marketing, Andrew Crawley, present head of BA’s sales, Iain Burns the former communications head and Alan Burnett, ex-in-charge for airline’s UK and Ireland sales.
BA was slapped with fine of £271.5m by the US authorities and the Office of Fair Trading last year, for fixing fuel charges for cargo and passenger flights. The four accused are summoned to appear on 24 September, before the City of London, magistrate court. This would probably be the most high-profile cartel trial in the UK.
Six more former employees of BA, including Gareth Kirkwood who was removed over Terminal 5 opening fiasco, are facing investigation by the US department of justice. BA ‘s reputation which had nose dived after the Terminal 5 incident would be embarrassed further, but the scandal would also expose Virgin Atlantic for its involvement although it escaped prosecution and won immunity from punishment. Two of its former executives, Willy Boulter and Paul Moore have been named in the lawsuit in the related case.
BA chief Willy Walsh wants Virgin Atlantic’s role in the scandal to be exposed, since people deserve to know the whole truth. Fuel surcharges are the levies on tickets imposed to cover fuel cost. Millions of passengers in Britain pay up to £20 for a return journey.
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