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BA execs face criminal charges over price-fixing

27/07/2008

The Office of Fair Trading (OFT) is to reportedly launch a criminal action against four British Airways executives over price-fixing.

The Financial Times newspaper says the charges relate to an alleged price-fixing collusion between BA and Virgin Atlantic between 2004 and 2006, over which BA was fined around £150 million by the OFT, as well as being handed a £120 million fine by the US department of justice.

And it is believed the OFT investigators have uncovered sufficient evidence against four BA executives to bring criminal charges against them, which could result in a five-year jail sentence.

The four men reportedly facing the charges are head of sales Andrew Crawley; former commercial director and board member Martin George; former head of communications Iain Burns; and former head of UK and Ireland sales Alan Burnett.

Mr Burnett retired in March 2006, while Messrs George and Burns resigned that year at the start of the OFT investigation, with the former admitting in his resignation letter that "inappropriate conversations" had taken place in his department regarding passenger fuel surcharges on transatlantic flights.

No Virgin Atlantic employees are to face charges - nor has the airline been fined - after it blew the whistle on the price-fixing conspiracy, thus gaining immunity.

It is believed the OFT charges will be launched on August 7th, shortly after BA presents its first-quarter results.