BA pleads guilty to price-fixing

The US District Court for the District of Columbia has approved a plea agreement between British Airways (BA) and the Department of Justice relating to fines of US$300 million for engaging in a price-fixing cartel, involving its airfreight and long-haul passenger businesses.

The court agreed that the substantial co-operation provided by British Airways to the US government justified a significant reduction in fines, which under Sentencing Guidelines ranged from $450 million to $900 million.

Willie Walsh, BA's chief executive, said: "As I have previously stated any anti-competitive behaviour is to be condemned at British Airways or at other companies. It will not be tolerated and we remain vigilant in this respect."

The court decision concludes the Department of Justice's criminal investigation into British Airways.

Meanwhile, Korean Air also admitted to fixing prices on international flights.