Regulators investigating alleged airline cartel

UK authorities have raided British Airways as part of a joint US investigation into an alleged cartel over passenger ticket pricing…

UK authorities have raided British Airways as part of a joint US investigation into an alleged cartel over passenger ticket pricing which saw BA suspend two senior executives.

Some European and US airlines said today they had been asked to assist in the suspected price-fixing investigation but were not direct targets.

BA, Europe's third-largest carrier, said the investigation by Britain's Office of Fair Trading (OFT) and the US Department of Justice related to passenger ticket prices, including fuel surcharges.

The carrier said its Commercial Director Martin George and Head of Communications Iain Burns had been given leave of absence during the investigation.

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The investigation follows a price-fixing investigation involving airlines' cargo charges announced in February that spread to carriers in the United States, Europe and Asia. That investigation is still proceeding.

BA shares, which had been trading at five-year highs, fell 5.8 per cent to 346-1/2 pence this morning.

The OFT said it visited BA's offices on June 13th as part of a a civil and criminal investigation into alleged price coordination and its investigation was "at an early stage".

American Airlines, BA's Oneworld alliance partner, said it has been contacted by US authorities about the inquiry but was not implicated.