PPRuNe Forums - View Single Post - BA Fine Over Price Fixing
View Single Post
Old 1st Aug 2007, 22:02
  #48 (permalink)  
ScottyDoo
 
Join Date: Oct 2006
Location: ...
Posts: 341
Likes: 0
Received 0 Likes on 0 Posts
Let us understand that "colluding" on something involves both sides doing something.
Apparently the "other" lot were KAL...

British Airways and Korean Air Lines Co each have agreed to plead guilty and pay separate $US300 million ($A353.29 million) criminal fines for conspiring to fix the prices of passenger and cargo flights, the US Department of Justice said today.

British Airways (BA) separately was fined a record £121.5 million in Britain after admitting collusion over fuel surcharges on tickets, according to the British antitrust agency.

The US charges against the British- and South Korean based airline companies were filed today in the US District Court for the District of Columbia.

.......Under the plea agreements, which are subject to the federal court approval, British Airways (BA) and Korean Air have agreed to cooperate with the ongoing investigation.........

The Justice Department charged Korean Air with agreeing with air cargo competitors on rates charged to customers in the United States and elsewhere for international air cargo shipments.

It noted that the conspirators agreed to increase the fuel surcharge over time from $US0.10 per kilogram to as high as $US0.60 for each kilogram of cargo shipped from the United States.

In addition, the department charged that Korean Air reached an agreement with its rival to fix certain passenger fares for flights from the United States to South Korea.

Two other airlines - Virgin Atlantic of Britain and Lufthansa of Germany - have agreed to cooperate in the antitrust division's ongoing investigations, the department said.

Both airlines have been conditionally accepted into the division's leniency program, it said, which allows a qualifying company that is the first to voluntarily disclose its participation in an antitrust crime and which fully cooperates in the subsequent investigation to avoid criminal conviction and a heavy fine.

The British BA fine was the largest penalty imposed by the Office of Fair Trading for violation of competition law.
The OFT said Virgin Atlantic escaped punishment because it cooperated with the inquiry. Virgin Atlantic blew the whistle on BA in 2006 by informing the OFT of their collusion.

The watchdog's subsequent probe led to the resignations of BA's commercial director and communications chief in October 2006.

Last edited by ScottyDoo; 1st Aug 2007 at 22:13.
ScottyDoo is offline