British Airways fined $709m

British Airways will pay fines of $709 million, after investigations into price-fixing were carried out by the US Department of Justice and the UK Office of Fair Trading (OFT).

The carrier, Europe's third biggest airline, has been punished for colluding with its rival, Virgin Atlantic, regarding surcharges added to ticket prices.

The extra charges added to tickets amounted to as much as $120 per ticket in some cases, the airline admitted.

Philip Collins, Chairman of the OFT, commented: "This case and the substantial penalty imposed will send an important message to corporate boards and business leaders about our intention to enforce the law and serves to remind companies of the substantial risks involved if they are found to engage in such behavior."

Willie Walsh, British Airways' Chief Executive, stressed that the anti-competitive behavior went against the airline's code of standards.

"I want to reassure our passengers that they were not overcharged. Fuel surcharges are a legitimate way of recovering costs," he said. "We have a long-standing competition compliance policy which requires all staff to comply with the law at all times. I am satisfied that we have the right controls in place."

He added: "However, it is deeply regrettable that some individuals ignored our policy."

Virgin Atlantic will not be fined, as it will receive “full immunity” for informing the OFT of the unauthorized contact made between employees of the two airlines.

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