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BA price-fixing scandal: executives to be named in US court – 24 Aug 2007

Lawyers acting for eight British Airways employees succeeded in postponing release of their identities in a US court as a judge confirmed a $300 million fine on the airline by the US Department of Justice.

But the names are likely to be published before the end of the month, putting the individuals at risk of criminal prosecution and presenting BA with fresh public relations problems.

The fine followed BA’s admission of collusion with rival airlines in setting fuel surcharges on passengers and cargo. Chief executive Willie Walsh has insisted only “a very limited number” of staff were involved as he sought to draw a line under the affair.

Two executives, commercial director Martin George and head of communications Iain Burns resigned last year following BA’s admission of collusion. It was also fined £121 million by the UK Office of Fair Trading this month.

However, the US fines could have been between 50% and three times as high, according to the Washington district court judge, who described the collusion as “widespread and of long duration”.

BA’s cooperation with the investigation, including the provision of hundreds of thousands of documents, lessened the punishment, said the judge.

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