Thursday, 9 June 2011

BA agrees compensation over US price-fixing investigation

British Airways have agreed to pay $89.5 million in compensation to settle an American lawsuit over their actions in an international price fixing cartel.

Three South American carriers, Chilean Lan Airlines, Lan Cargo and Aerolinhas Brasileiras have agreed a $66 million compensation payment between them.

The case relates to a group of more than 20 airlines who are accused of agreeing prices for fuel surcharges on US shipments between 2000 and 2006.

The case has resulted in 21 airlines and 21 executives being charged in the investigation by the Department of Justice. The total amount of fines metered out
are more than $1.8bn and four airline executives being sentenced to serve prison terms.

The most recent BA fine is in addition to a further $300 million by the US Department of Justice.

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