OFT And DoJ Probing Alleged Price-Fixing By Airlines

by Robin Pilgrim, LawAndTax-News.com, London

23 June 2006

It has emerged this week that competition authorities in the United Kingdom and the United States are investigating possible price-fixing activity by airlines in the two countries.

In a statement published on Thursday, British Airways confirmed that:

"The Office of Fair Trading (OFT) and the United States Department of Justice (DOJ) are investigating alleged cartel activity involving British Airways and other airlines in relation to pricing of passenger air transportation, including fuel surcharges."

"British Airways' policy is to conduct its business in full compliance with all applicable competition laws. British Airways is assisting the OFT and DOJ with their investigations. Martin George, Commercial Director, and Iain Burns, Head of Communications, have been given leave of absence during the investigation."

According to reports, it is not yet known which other airlines are involved in the probe, although Virgin Atlantic told Reuters that it was aware of the investigation.

An international investigation into surcharges imposed by airlines to cover increased fuel prices and additional security was launched earlier this year, and the OFT announced in May that it was considering examining the UK airports market, with a view to establishing if the current market structure works well for consumers.

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