BA 'fixing' trial collapses

THE TRIAL of four senior British Airways executives accused of price-fixing with Virgin Atlantic collapsed yesterday when prosecuting…

THE TRIAL of four senior British Airways executives accused of price-fixing with Virgin Atlantic collapsed yesterday when prosecuting lawyers said they would not be offering any evidence.

The Office of Fair Trading (OFT), bringing the first such prosecution of allegations of dishonest collusion between the airlines, had failed to disclose key documents to the defence for years, London’s Southwark Crown Court was told.

On Friday it emerged that a year’s worth of e-mails had been discovered, including one from March 2005, which showed Virgin had increased its fuel surcharge before speaking to anyone from BA. This suggested the increase had not been the result of price-fixing or dishonest collusion, the court was told.

The OFT said it would review the role played by Virgin Atlantic and its advisers in light of the airline’s obligations to provide the OFT with continuous and complete co-operation, and said this could have consequences for Virgin’s immunity from penalties.

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Virgin Atlantic responded by saying it had fully assisted the OFT throughout the process and denied any suggestion it had not complied with its obligations as an immunity applicant. The four had all denied the charges. – (Reuters)