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Prosecutors say Branson part of price-fix

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Published: April 28, 2010 at 11:35 AM
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LONDON, April 28 (UPI) -- Prosecutors in Britain allege Virgin Atlantic President Richard Branson was part of a price-fixing scheme with British Airways concerning fuel surcharges.

Prosecutors claim the scheming began in 2004, when the rival airlines were concerned over rising jet fuel prices but also concerned that raising fares would cause them to lose passengers, The Times of London reported Wednesday.

Prosecutors from the Office of Fair Trading laid out their case in the second day of the trial, saying Branson ordered Virgin's commercial director Willy Boulter to "sound out" executives he knew at BA on the possibility of coordinating surcharge increases.

Prosecutor Richard Latham said it was Branson's idea to have variable surcharges that relied on first-class passengers paying more of the surcharges than economy-class passengers.

Prosecutors said BA made $51.7 million on the scheme.

No one at Virgin, including Branson, has been charged in the case, which charges four BA executives with price-fixing, a crime in Britain since 2003.

Several Virgin executives are to appear as witnesses for the prosecution, The Times said.

Topics: Richard Branson
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