08/26/2007

News / US names 10 BA executives who may be extradited for price-fixing

The US government has identified 10 current and former British Airways executives who are liable to possible extradition and criminal prosecution over their alleged involvement in a price-fixing scandal that has already cost the airline a $300m (£150m) fine.
In a legal document filed at a federal court in Washington, the Department for Justice singles out the 10 individuals as being exempt from a plea bargain granting immunity to prosecution for all other BA directors, officers and employees.

The most senior serving executive is BA's director of operations, Gareth Kirkwood, who oversees all in-flight services and crew planning at the national flag carrier. Others include Andrew Crowley, head of UK and Ireland sales; Ian Barrigan, business development manager and Anthony Nothman, manager for international customer services at BA's cargo division.
A BA spokeswoman said the executives would continue to work for the airline full-time and the airline had agreed to let them co-operate fully with the investigation, including requests to attend grand jury hearings in US courtrooms. She added: "Because they are included in the carve-out list that does not mean that the DoJ has determined that they are guilty of a criminal offence or that they have participated in any criminal conduct."

BA this week admitted price-fixing and was handed one of the biggest US anti-trust fines in recent years. The airline admits it plotted with competitors including Virgin Atlantic to fix cargo price and fuel surcharges levied on passenger tickets. The US Department of Justice describes the scandal as "a combination and conspiracy to suppress and eliminate competition". It says prices were manipulated for sales billed to American citizens totalling $1.4bn.

Spurred by the fight against global terrorism, the US authorities have been keen to extend their international reach. Douglas McNabb, a Texas-based lawyer specialising in white collar extradition, said competition had moved up prosecutors' agendas. "It used to be a dusty, unenforced area of the law," said Mr McNabb. "We're seeing them take a much more aggressive approach." He added: "It's all tied back to the current administration's move to democratise the world. Anti-corruption, short of anti-terrorism, is number one on the FBI's list of priorities."

Any extraditions would be under a controversial bilateral extradition treaty widely criticised as too broad which was used by the Americans last year to seize the so-called Natwest Three, who face Enron-related fraud charges in Houston.

Six of the 10 men exempted from the plea agreement have left BA.

Virgin Atlantic tipped off the authorities about the price-fixing last year but has escaped prosecution in return for its role as "whistle-blower".

Andrew Clark in New York, Dan Milmo
Saturday August 25, 2007
The Guardian
http://www.guardian.co.uk/ba/story/0,,2155933,00.html

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