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BA and Virgin executives named in collusion class-action

Friday, 24 August 20073 min read

Three former British Airways executives and two Virgin executives are reported to have been named by the Washington lawyers handling a class-action suit against the airlines over price-fixing.

According to the Times, the third BA executive is Alan Burnett, former head of UK and international sales, alongside former commercial director Martin George and former communications director Iain Burns.

At Virgin, says the Times, the executives named are former communications director Paul Moore and Willy Boulter, the airline’s current commercial director.

Both airlines today refused to comment specifically on this matter, but confirmed the names and job titles of the people in question.

The class-action suit is being filed by Cohen, Milstein, Hausfeld & Toll, which is seeking damages on behalf of “all victims of the alleged cartel, from all nations”.

It says BA and Virgin conspired to fix the prices of airline fuel surcharges between May 2004 and September 2006 and, as a result, customers paid overcharges.

According to the Times Business report, Michael Hausfeld, the lawyer bringing the case, said that if the airlines do not cooperate, he may seek compensation from the individuals involved.

According to other reports in the business press, the US Department of Justice was separately due to name 10 executives involved in the collusion at a hearing in Washington yesterday.

At the hearing, the US District Court for the District of Columbia approved the $300 million (£150 million) fine imposed on BA for its part in the collusion.

Although the decision concludes the DoJ’s criminal investigation, the investigation into the conduct of individuals continues.

They could be extradited to the US and, if found guilty, face prison sentences of up to 10 years.

In October 2006, Martin George and Iain Burns quit BA.

Burns is now vice-president of corporate communications for Etihad Airways.

By Bev Fearis