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BA investigated over ‘cartel activity’
British Airways and other unnamed airlines are being investigated by UK and US regulators over alleged price fixing of tickets and fuel surcharges.
BA issued a statement saying it has given its commercial director, Martin George, and head of communications, Iain Burns, leave of absence during the investigation.
It said it is fully co-operating with the UK Office of Fair Trading and the US Department of Justice.
“BA’s policy is to conduct its business in full compliance with all applicable competition laws,” it said.
If the authorities find BA guilty of cartel activity, the airline could be fined up to 10% of its turnover, which was £8.5bn for the year to March 31.
The airline’s shares fell 3.2% to 356 pence in early trading on Thursday and ended up falling by almost 6% to 346p.
BA has gradually raised fuel surcharges since 2001 so that long-haul passengers now pay £70 on a return ticket.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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