http://uk.news.yahoo.com/itn/20070823/tuk-british-airways-pleads-guilty-in-=
us-dba1618_1.html
British Airways has pleaded guilty to price-fixing and has had its
$300 million (=A3150m) fine upheld by a US court.
The airline admitted colluding with rivals on surcharges on passenger
fares and cargo to help ease the impact of sharp increases in fuel
prices.
US District Judge John Bates said the penalty was below the amount
called for in sentencing guidelines but was reasonable considering the
company's co-operation in the ongoing investigation.
BA illegally set surcharge levels in co-operation with competitor
Virgin Atlantic from August 2004 to January 2006.
The Department of Justice had already imposed the fine after Britain's
Office of Fair Trading fined BA =A3125.5 million for its involvement in
the scandal.
The hearing follows an investigation into allegations that BA
negotiated with rival companies over how much extra to charge on
flights to cover fuel costs.
Virgin Atlantic tipped-off the Office of Fair Trading (OFT) about the
scandal and subsequently has immunity.
The Department of Justice may also clarify whether criminal charges
will be bought against named BA executives. This would mean not only
fines, but possibly prison sentences for those involved.
|