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Thu, Aug 07, 2008

Four Charged In British Price Collusion Scheme

OFT Says Men Fixed Surcharges On BA, Virgin Atlantic Flights

Britain's Office of Fair Trading charged four men this week in connection with a scheme to fix fuel surcharges between British Airways and Virgin Atlantic Airways, according to a government statement.

The men -- Martin George, Andrew Crawley, Alan Burnett and Iain Burns -- were charged with "cartel offenses" under the Enterprise Act of 2002 in connection with the OFT's criminal investigation into price-fixing of fuel surcharges for long haul passenger flights.

The men are charged with "having dishonestly agreed with others to make or implement arrangements which directly or indirectly fixed the price for the supply in the United Kingdom of passenger air transport services by British Airways and Virgin Atlantic Airways."

The charges relate to the period between July 2004 and April 2006 when the defendants were employed by British Airways, the government added. The men will appear at City of London Magistrates Court on September 24.

Individuals convicted of the cartel offence under the Enterprise Act may be sentenced to up to five years' imprisonment and/ or an unlimited fine, though a leniency program is available for collaborators who admit to improper conduct.

FMI: www.oft.gov.uk, www.britishairways.com, www.virginatlantic.com

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