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Fines set to cost BA £10m


BRITISHAirways’ override and commission policies are expected to cost the carrier around £10m next month.



The European Commission is set to fine BA over what it considers unfair competitive practices.



The pending decision is the result of a six-year review into the way BA, and eight other European airlines, incentivise agents. The other carriers are Air France, KLM, Lufthansa, SAS, Sabena, Olympic Airways, Austrian Airlines and Alitalia.



BAsaid it would contest the fine, arguing that it was only following industry practice.



A separate issue in the US, brought by Virgin Atlantic, over BA’s policy of paying overrides on a network basis rather than on individual routes, is also close to being resolved.



BA said it was unaware of any result, but Virgin chairman Richard Branson said he expected a substantial fine for his rival within two months.


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