Airline Price Fixing
We have not posted enough about this (because, uh, it’s August, it’s hot and everyone is on vacation) but on August 1, British Airways (BA) and Korean Air Lines entered into plead agreements with the US Department of Justice. They officially plead guilty and were sentenced on August 23. According to DOJ’s press release “the companies pleaded guilty and were sentenced to pay separate $300 million criminal fines for their roles in conspiracies to fix the prices of passenger and cargo flights.”
The Department of Justice’s investigation is, of course, not over. In fact, it is not over for BA. As Bloomberg reported on Friday:
British Airways Plc director Gareth Kirkwood, former board member Martin George and eight other managers may face prosecution in the U.S. after the airline colluded with other carriers in fixing fuel surcharges.…
Kirkwood, director of operations, George, former commercial director, and Iain Burns, who was head of communications, don’t qualify for immunity from prosecution granted to the carrier and its workers for cooperating with U.S. investigators, according to filings from a U.S. federal court in Washington.
…
Also facing possible prosecution and still working at the airline are Andrew Crawley, head of U.K. and Irish sales, Ian Barrigan, business-development manager, and Anthony Nothman, international customer-services manager for cargo operations.
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