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BA pair quit on fuel price probe BA pair quit on fuel price probe
(10 minutes later)
Two British Airways officials on leave of absence since an investigation began into fuel surcharges have resigned. Two British Airways officials have quit amid an investigation into alleged price-fixing of fuel surcharges.
The two - commercial director Martin George and communications chief Iain Burns - have been on leave of absence since the probe began in June.
The UK Office of Fair Trading and the US Department of Justice are looking at claims that BA had been informing other airlines of its fuel surcharge plans.The UK Office of Fair Trading and the US Department of Justice are looking at claims that BA had been informing other airlines of its fuel surcharge plans.
Commercial director Martin George and head of communications Iain Burns left work when the probe began in June. BA admitted it had contacted a competitor over fuel surcharges.
Mr George said there may have been "inappropriate conversations" in his office over long-haul fuel surcharges. Breach of policy
In a letter to BA chairman Martin Broughton, he added that he was not involved in "such conversations". In a letter to BA chairman Martin Broughton, Mr George said there may have been "inappropriate conversations" in his office over long-haul fuel surcharges, although he said he was not involved in "such conversations".
Contact took place with a competitor in respect of long-haul passenger fuel surcharges, in breach of the company's compliance policy British Airways statement Q&A: BA investigationContact took place with a competitor in respect of long-haul passenger fuel surcharges, in breach of the company's compliance policy British Airways statement Q&A: BA investigation
However, he said: "Although the board have not found that I have behaved in a dishonest way, I fully recognise my responsibilities as head of department and as a board director." He added: "Although the board have not found that I have behaved in a dishonest way, I fully recognise my responsibilities as head of department and as a board director."
Reports have said that a BA executive told a counterpart from rival airline Virgin Atlantic of plans to increase BA's fuel surcharge, and that Virgin then tipped-off the Office of Fair Trading (OFT).Reports have said that a BA executive told a counterpart from rival airline Virgin Atlantic of plans to increase BA's fuel surcharge, and that Virgin then tipped-off the Office of Fair Trading (OFT).
Breach of policy
British Airways has conducted an internal investigation in order to respond to the requests for information made by the regulators.British Airways has conducted an internal investigation in order to respond to the requests for information made by the regulators.
In a statement issued on Monday it admitted that "contact took place with a competitor in respect of long-haul passenger fuel surcharges, in breach of the company's compliance policy".In a statement issued on Monday it admitted that "contact took place with a competitor in respect of long-haul passenger fuel surcharges, in breach of the company's compliance policy".
It added that it was still assisting the regulators with their investigations.It added that it was still assisting the regulators with their investigations.
The OFT said its investigations into British Airways were still continuing.The OFT said its investigations into British Airways were still continuing.
If found guilty of anti-competitive behaviour, BA could be fined up to 10% of its worldwide sales, which came in at £8.5bn for the year to 31 March.If found guilty of anti-competitive behaviour, BA could be fined up to 10% of its worldwide sales, which came in at £8.5bn for the year to 31 March.
Last February, BA and a number of other airlines, including Lufthansa, Singapore Airlines and SAS, were investigated by the European Commission and US competition authorities.Last February, BA and a number of other airlines, including Lufthansa, Singapore Airlines and SAS, were investigated by the European Commission and US competition authorities.
That inquiry was believed to focus on the area of fuel surcharges and other levies for cargo handling.That inquiry was believed to focus on the area of fuel surcharges and other levies for cargo handling.