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| BA may face £350m collusion bill | BA may face £350m collusion bill |
| (10 minutes later) | |
| British Airways has put aside £350m to cover possible fines and legal action after it broke competition law. | British Airways has put aside £350m to cover possible fines and legal action after it broke competition law. |
| Sending its shares down 4%, it relates to last year's finding that BA had discussed fuel surcharges with rivals. | |
| The news came as BA said annual operating profits had slumped 13% to £602m after a spate of negative events. | The news came as BA said annual operating profits had slumped 13% to £602m after a spate of negative events. |
| Thousands of flights were cancelled after a terror threat in August, with many more hit by severe fog over the Christmas period. | Thousands of flights were cancelled after a terror threat in August, with many more hit by severe fog over the Christmas period. |
| Members of our staff breached our comprehensive policies on competition compliance rules. I find that very regrettable and completely unacceptable Willie WalshBA Chief Executive Check BA share price | Members of our staff breached our comprehensive policies on competition compliance rules. I find that very regrettable and completely unacceptable Willie WalshBA Chief Executive Check BA share price |
| And a proposed cabin crew strike was called off, but not before thousands of passengers had cancelled reservations. | And a proposed cabin crew strike was called off, but not before thousands of passengers had cancelled reservations. |
| 'Best estimate' | 'Best estimate' |
| The UK Office of Fair Trading and the US Department of Justice have been investigating alleged price-fixing of fuel surcharges for almost a year. | The UK Office of Fair Trading and the US Department of Justice have been investigating alleged price-fixing of fuel surcharges for almost a year. |
| If found guilty of operating a price-fixing or market-sharing cartel, an airline can expect to be fined as much as 10% of its worldwide sales - and criminal action could also result. | If found guilty of operating a price-fixing or market-sharing cartel, an airline can expect to be fined as much as 10% of its worldwide sales - and criminal action could also result. |
| In October, BA's commercial director Martin George and communications chief Iain Burns - who had been on leave of absence since the probe began - quit the company. | In October, BA's commercial director Martin George and communications chief Iain Burns - who had been on leave of absence since the probe began - quit the company. |
| The £350m put aside is to cover any liability resulting from legal action over the rigging of fuel surcharge prices, as well as fines. | The £350m put aside is to cover any liability resulting from legal action over the rigging of fuel surcharge prices, as well as fines. |
| The provision was the "best estimate" of the amount needed to settle all claims, BA said, adding that there was uncertainty about the final bill. | The provision was the "best estimate" of the amount needed to settle all claims, BA said, adding that there was uncertainty about the final bill. |
| "Members of our staff breached our comprehensive policies on competition compliance rules," chief executive Willie Walsh told the BBC. | "Members of our staff breached our comprehensive policies on competition compliance rules," chief executive Willie Walsh told the BBC. |
| "I find that very regrettable and completely unacceptable". | "I find that very regrettable and completely unacceptable". |
| 'Frustrating' | 'Frustrating' |
| Mr Walsh said the results were "strong" in what had been "a challenging year", which saw sales up 3.4% to £8.49bn in the year to 31 March. | |
| Pre-tax profits fell 0.8% to £611m, better than analysts had expected. | Pre-tax profits fell 0.8% to £611m, better than analysts had expected. |
| "We know at times it has been a frustrating year for our customers, caused by disruption and overly restrictive UK government security measures on hand baggage," he said. | "We know at times it has been a frustrating year for our customers, caused by disruption and overly restrictive UK government security measures on hand baggage," he said. |
| The August terror threat saw BA cancel 1,280 flights, and left BA with a hefty bill for hotels, catering and baggage recovery. | The August terror threat saw BA cancel 1,280 flights, and left BA with a hefty bill for hotels, catering and baggage recovery. |
| Increased security restrictions introduced also meant the number of business passengers taking its flights fell in the following weeks. | Increased security restrictions introduced also meant the number of business passengers taking its flights fell in the following weeks. |
| Last-gasp talks in January prevented a series of strikes, but the cancellations already made led to profits falling 72% between January and March. | Last-gasp talks in January prevented a series of strikes, but the cancellations already made led to profits falling 72% between January and March. |
| Attractive | Attractive |
| After the collapse of a private equity bid for Australia's national carrier Qantas, some analysts have tipped BA as a potential takeover target. | After the collapse of a private equity bid for Australia's national carrier Qantas, some analysts have tipped BA as a potential takeover target. |
| Its shares rose 2.4% on Thursday as Goldman Sachs described it as the "jewel in the crown" in terms of its attractiveness to potential buyers. | Its shares rose 2.4% on Thursday as Goldman Sachs described it as the "jewel in the crown" in terms of its attractiveness to potential buyers. |
| BA is also believed to be considering a bid for Spain's carrier, Iberia, in which it already owns a 10% stake. | BA is also believed to be considering a bid for Spain's carrier, Iberia, in which it already owns a 10% stake. |
| Earlier this year the airline sold off its loss-making regional airline BA Connect as it tried to plug a hole in its £2.1bn pension deficit. | Earlier this year the airline sold off its loss-making regional airline BA Connect as it tried to plug a hole in its £2.1bn pension deficit. |
| The airline also announced on Friday that it had ordered eight new short haul Airbus A320 planes for delivery between 2008 and 2010. | The airline also announced on Friday that it had ordered eight new short haul Airbus A320 planes for delivery between 2008 and 2010. |