BA still refusing to pay OFT price fixing fine
01.08.11
BA is refusing to pay a a £121 million fine imposed by the OFT in 2007, the Telegraph reports. The airline was accused by the OFT of conspiring with executives at Virgin Atlantic to fix the fuel surcharge element of ticket prices. However, it is continuing to withhold the payment following the watchdog's embarrassing failure last year to bring a criminal cartel prosecution against four current and former BA executives.
The watchdog's case fell apart just days into the trial after the sudden emergence of 70,000 new emails that should have been disclosed to the defence by Virgin Atlantic. Willie Walsh, the chief executive of BA parent IAG, told the newspaper that he has no intention of paying the fine unless the OFT provided fresh evidence proving the airline's wrongdoing. He said: ‘The OFT fine is still outstanding. We haven't agreed any payment with them. We said we needed disclosure of the evidence before we could agree anything with them. But, given the way the criminal trial collapsed, we don't believe there are any grounds for that level of fine.’
The newspaper says that his comments put him 'on a collision course' with John Fingleton, the OFT chief executive, who said in the wake of the trial that he intended to pursue BA for the full amount.
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