BA Director resigns over fuel 'price fixing'

[overstress]

The BBC has the headlines here (http://news.bbc.co.uk/2/hi/business/6032975.stm)

[MrBernoulli]

Pair of idiots! These 2, Martin George and Iain Burns, will cost BA dear. Resigning amidst talk of "inappropriate conversations" is pretty much a sign of guilt. They "have been on leave of absence since the probe began in June", no doubt on full pay, and now they will head for the hills with pockets full of perks and what-have-you, and leave us to foot the effing bill!.

"If found guilty of anti-competitive behaviour, BA could be fined up to 10% of its worldwide sales, which came in at £8.5bn for the year to 31 March." Is BA going to take money back from this pair of numpties to 'help' with the fine? If not, WHY NOT?

Thanks a bunch, you buffoons!

[haughtney1]

I wonder if these guys went to the Lord King school of doing business?

Perhaps its yet another case of corporate people in Ivory towers being so far removed from reality..that they thought the rules wouldn't apply to them:hmm:

[overstress]

corporate people in Ivory towers being so far removed from reality..that they thought the rules wouldn't apply to them

Too true, haughtney, and there are some in flt ops in BA who don't think the ANO applies to them either... allegedly.

[Abbeville]

Think MG is going to get a paid suntan in the sandpit.

[sidtheesexist]

If BA were fined, would that not have serious implications for the NAPs deficit and investment in new AC?

[overstress]

No, it's OK Sid, the pension fund raid will pay the £850m fine.

[sidtheesexist]

Overstres - do I detect a note of cynicism in your post? Or perhaps realism or a combination of both..................:E

[frostbite]

is on BBC2 at 2200 tonight - might throw some more light on the subject.

[Banzai Eagle]

Personal greed and bonus reading between the lines, bonus related to company profit so fixing prices alledgedly would contribute to higher profits = higher bonus.

[Nov71]

In the programme, Virgin Branson did not deny complicity before blowing the whistle with the DFT. Embarrasing to be 'found in bed' with BA et al!
Did the 2 BA execs resign to protect their pension and severance package?

[RevMan2]

Price-fixing cost Lufthansa Cargo an $85m out of court settlement (http://www.antitrustreview.com/archives/691) and the CEO his job (http://lhir-pb01-m02.pironet-ndh.com/servlet/PB/menu/1016203_l2/index.html)......

[ekpilot]

Personal greed and bonus reading between the lines, bonus related to company profit so fixing prices alledgedly would contribute to higher profits = higher bonus.

If MG is coming to this sandpit, he'll fit in nicely! :hmm:

[Roobarb]

Whilst I’ll shed no tears that these guys have left for what can only be described as reprehensible business practices, I despair at the impact that their shenanigans have on the ordinary decent hard working people at BA.

Despite the popular perception, most of us at BA have put in an enormous amount of hard work in the last few years to shape up to the competition from LoCo’s. The productivity increases on shorthaul in particular have even drawn praise from PoD himself.

Sadly though, the only material benefits have gone to the managers as usual with the Dir Flt Ops walking away with £400k in zero cost share options this year, and Willy-come-lately taking nearly £900k.

Yet once again, with the Dirty Tricks book still selling over the counter, we are hamstrung with massive lawsuits over some clever dick beancounter and his latest scam to fill his own pockets with cash, ripped off from staff/customers/other airlines – who cares?

If these business practices made any commercial sense, or could show a profit at the end of the day, then I might understand. But historically, this kind of spivish behaviour has cost this once great company millions and millions of pounds. You might have thought that they’d learned their lesson by now, but I’m afraid this profoundly ungenerous spirit is deeply ingrained in the management of BA. We are riven top to bottom with a carnivorous avarice that is deeply corrosive, and undermines everything that we do.

Is it any wonder that no-one in BA believes the utterly pernicious pension theft, and the misery that it condemns thousands of loyal staff to in their twilight?

Not all the staff though, there are a few who will walk away with millions. If they don’t get caught that is.:*
http://www.80scartoons.8k.com/roobarb10wee.gif
I’ll take on the opposition anyday. It’s my management I can’t beat!

[haughtney1]

It seems as thought the old adage about ultimate power and corruption (alleged corruption I hasten to add) is part and parcel with the corporate world these days.
I cant help thinking that the supposed ethics and practice of big business in the UK masks a far more deceptive and deceitful agenda geared towards lining the pockets of senior management and majority stakeholders.
This latest revelation about BA has just further confirmed my opinion that British companies (and probably plenty of companies elsewhere besides) exploit their customers and employees with thinly disguised zeal. It seems as though not a week goes by where a new revelation takes place...the pensions deficit debacle springs to mind. And, as ever it is the hard working honest employee/customer that has to suffer, executives rarely see the inside of a prison cell..or if they do, it is seldom that their assets are seized to recompense those who they dupe (insert..tricked..stole from..decieved..as appropriate).
In the airline business, there seems to be few that can match Southwest (US) Airlines in terms of its staff satisfaction, retention, remuneration, and overall level of customer service for its particular market segment. Maybe thats the problem, maybe too many BA staff are happy to sit back and let the company get on with its various endeavors because they are more interested in doing their 8,10, or 12 hr shift and heading off home without ever wondering if they are actually making a difference?
In any case, as things stand this wont be the last scandal to hit BA....another one soon is IMHO inevitable.

[overstress]

In any case, as things stand this wont be the last scandal to hit BA....another one soon is IMHO inevitable.

Sounds intriguing...

Roobarb: :ok: a top posting which accurately sums up how the majority of pilots in BA view their management.

Haughtney: many of us (still) go the extra mile on a daily basis, the problem is that our management won't go the extra inch.

[PAXboy]

RoobarbSadly though, the only material benefits have gone to the managers as usual ...
Last week's edition of the BBC radio programme The Bottom Line (http://www.bbc.co.uk/radio4/news/bottomline/bottomline.shtml?) looked at executive pay and you can 'Listen Again' to the programme on that page.

The truly interesting / disgusting news that started the debate was. In FTSE 100 companies:
The pay of directors is increasing at the rate of 40% per year.
The pay of all other staff has increased (in the years 2000 to 2005) at the rate of 26% during which exec pay went up by some 120%.

I sit to be corrected by any that listens again to the programme

As was pointed out, only shareholders have the power to curb the FTSE companies - and they show no inclination to do that. The reasons will be obvious. They also recalled the first Fat Cat payments issue from 20 years ago when British Gas was being sold off cheap and the way in which Tony Blair spoke out against such salaries. :D :rolleyes:

[ajwajw]

"If these business practices made any commercial sense, or could show a profit at the end of the day, then I might understand." Roobarb

Where do you think the up to £70 a sector was going, straight into the Director's pockets or propping up a badly run airline!
Stop being so pious, they were "allegedly" talking about keeping fuel surcharges as high as possible along with their competitors to stop being bled dry by oil companies who are making obscene profits while airlines go bankrupt.

[Riverboat]

Unfortunately this is business today. Maybe it was business all along, as I suppose price fixing was extant 50 years ago too.

But surely the whole business of fuel surcharges is ridiculous. They should not be allowed. Airlines should just put their fares up, because right now they are just being plain devious if they add a fuel surcharge to the advertised fare. I am sure that this is technically illegal, but noone seems to be bothered about it.