BA Executives Targeted in Fare-fixing Plot
By Emmet Oliver, Shanghai Daily | Aug. 27, 2007
British Airways Plc Director Gareth Kirkwood, former board member Martin George and eight other managers may face prosecution in the United States after the airline colluded with other carriers in fixing fuel surcharges.
British Airways, Europe's third-largest airline, was fined US$300 million on August 23 after pleading guilty to two criminal counts of conspiracy in setting extra charges on passenger and cargo flights to offset rising fuel expenses. Details of the ruling are contained in a plea agreement published on August 24.
Kirkwood, director of operations; George, former commercial director; and Iain Burns, who was head of communications, don't qualify for immunity from prosecution granted to the carrier and its workers for cooperating with US investigators, according to filings from a US federal court in Washington.
"We cannot comment or speculate on the individual cases," Julia Simpson, British Airways' head of corporate communications, told Bloomberg News on August 24. Chief Executive Officer Willie Walsh said on August 23 that the London-based carrier would not tolerate anti-competitive behavior and would "remain vigilant."
Also facing possible prosecution and still working at the airline are Andrew Crawley, head of United Kingdom and Irish sales; Ian Barrigan, business-development manager; and Anthony Nothman, international customer-services manager for cargo operations.
British Airways' fuel surcharge on round-trip passenger flights between the US and the UK rose to US$110 a ticket in 2006, from US$10 in 2004.
The UK carrier could have been fined as much as US$894 million, had the Justice Department's antitrust division not recommended the lower penalties after plea negotiations.