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US judge upholds BA's $300m fine | US judge upholds BA's $300m fine |
(10 minutes later) | |
A US judge has upheld a $300m (£150m) fine against British Airways (BA) for price fixing after a guilty plea. | A US judge has upheld a $300m (£150m) fine against British Airways (BA) for price fixing after a guilty plea. |
The case was heard by a judge in Washington, who had to formally approve the fine which was recommended in July by the Department of Justice. | The case was heard by a judge in Washington, who had to formally approve the fine which was recommended in July by the Department of Justice. |
BA now faces the likelihood of a class action lawsuit by thousands of US customers who were overcharged. | BA now faces the likelihood of a class action lawsuit by thousands of US customers who were overcharged. |
The airline had tried to fix the price of fuel surcharges on US flights in collusion with Virgin Atlantic. | The airline had tried to fix the price of fuel surcharges on US flights in collusion with Virgin Atlantic. |
Joint investigations | |
BA could have faced a US fine of up to $900m, but the Department of Justice credited it for co-operating with the inquiry. | |
Anti-competitive behaviour is entirely unacceptable and we condemn it unreservedly Willie Walsh, BA chief executive Q&A: BA price fixing | |
The American fine followed a detailed investigation on both sides of the Atlantic. | |
Investigations in the UK were led by the Office of Fair Trading (OFT), which has already fined BA £121.5m. | |
As rival Virgin Atlantic tipped off the OFT about the price-fixing scandal, it was granted immunity. | |
It was the first time that the UK and the US have simultaneously brought action against a company. | |
Key departures | |
BA had colluded with Virgin Atlantic on at least six occasions between August 2004 and January 2006, the OFT found. | |
During that time, fuel surcharges rose from £5 to £60 per ticket. | |
BA's chief executive Willie Walsh has insisted that passengers had not been overcharged because fuel surcharges were "a legitimate way of recovering costs". | |
However, he has acknowledged that the conduct of some of the carrier's employees had been wrong and could not be excused. | |
"Anti-competitive behaviour is entirely unacceptable and we condemn it unreservedly," Mr Walsh said earlier this month. | |
In October 2006, BA's commercial director, Martin George, and communications chief, Iain Burns - who had been on leave of absence since the inquiry into the surcharges began - quit the company. |