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BA pair quit on fuel price probe | BA pair quit on fuel price probe |
(about 3 hours later) | |
Two British Airways officials have quit amid an investigation into alleged price-fixing of fuel surcharges. | Two British Airways officials have quit amid an investigation into alleged price-fixing of fuel surcharges. |
The two - commercial director Martin George and communications chief Iain Burns - have been on leave of absence since the probe began in June. | The two - commercial director Martin George and communications chief Iain Burns - have been on leave of absence since the probe began in June. |
The UK Office of Fair Trading and the US Department of Justice are looking at claims that BA had been informing other airlines of its fuel surcharge plans. | The UK Office of Fair Trading and the US Department of Justice are looking at claims that BA had been informing other airlines of its fuel surcharge plans. |
BA admitted it had contacted a competitor over fuel surcharges. | BA admitted it had contacted a competitor over fuel surcharges. |
Breach of policy | Breach of policy |
In a letter to BA chairman Martin Broughton, Mr George said there may have been "inappropriate conversations" in his office over long-haul fuel surcharges, although he said he was not involved in "such conversations". | In a letter to BA chairman Martin Broughton, Mr George said there may have been "inappropriate conversations" in his office over long-haul fuel surcharges, although he said he was not involved in "such conversations". |
Contact took place with a competitor in respect of long-haul passenger fuel surcharges, in breach of the company's compliance policy British Airways statement href="/1/hi/business/6032213.stm" class="">The Great Plane Robbery? href="/1/hi/business/5105454.stm" class="">Q&A: BA investigation | |
He added: "Although the board have not found that I have behaved in a dishonest way, I fully recognise my responsibilities as head of department and as a board director." | He added: "Although the board have not found that I have behaved in a dishonest way, I fully recognise my responsibilities as head of department and as a board director." |
Reports have said that a BA executive told a counterpart from rival airline Virgin Atlantic of plans to increase BA's fuel surcharge, and that Virgin then tipped-off the Office of Fair Trading (OFT). | Reports have said that a BA executive told a counterpart from rival airline Virgin Atlantic of plans to increase BA's fuel surcharge, and that Virgin then tipped-off the Office of Fair Trading (OFT). |
British Airways has conducted an internal investigation in order to respond to the requests for information made by the regulators. | British Airways has conducted an internal investigation in order to respond to the requests for information made by the regulators. |
In a statement issued on Monday it admitted that "contact took place with a competitor in respect of long-haul passenger fuel surcharges, in breach of the company's compliance policy". | In a statement issued on Monday it admitted that "contact took place with a competitor in respect of long-haul passenger fuel surcharges, in breach of the company's compliance policy". |
It added that it was still assisting the regulators with their investigations. | It added that it was still assisting the regulators with their investigations. |
The OFT said its investigations into British Airways were still continuing. | The OFT said its investigations into British Airways were still continuing. |
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. | 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. |
Last February, BA and a number of other airlines, including Lufthansa, Singapore Airlines and SAS, were investigated by the European Commission and US competition authorities. | Last February, BA and a number of other airlines, including Lufthansa, Singapore Airlines and SAS, were investigated by the European Commission and US competition authorities. |
That inquiry was believed to focus on the area of fuel surcharges and other levies for cargo handling. | That inquiry was believed to focus on the area of fuel surcharges and other levies for cargo handling. |