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British Airways faces price-fixing probe

LONDON, June 25 (UPI) -- The FBI is poised to question British Airways officials in New York about alleged price-fixing of fuel surcharges, The (London) Observer reported.

U.S. investigators are moving into the price-fixing probe as authorities from the U.K. Office of Fair Trading get ready to interview British Airways managers this week.

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The investigation will focus on two senior British Airways officials -- commercial director Martin George and head of communications Iain Burns -- the newspaper said. The OFT is reportedly focusing on taped conversations between Burns and the public relations department of Virgin Atlantic.

Virgin is not a target of the probe, The Observer said.

Both Virgin and British Airways have increased their surcharges several times since spring of 2004. Sources said British Airways contacted Paul Moore, Virgin's former communications head, and Virgin then contacted the OFT.

George and Burns could face criminal charges under the 2002 Enterprise Act if they are found to have negotiated with other airlines over surcharges, the Guardian reported.

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