Airlines Probed for Price Fixing
Shares of British Airways (BAB) fell Thursday after the company disclosed a probe by U.S. and U.K. authorities into possible price collusion among air carriers.
"The Office of Fair Trading and the United States Department of Justice are investigating alleged cartel activity involving British Airways and other airlines in relation to pricing of passenger air transportation, including fuel surcharges," the company said in a statement on its Web site.
"British Airways' policy is to conduct its business in full compliance with all applicable competition laws," the company said in its statement. BA said it is assisting regulators with the investigations and has placed commercial director Martin George and communications head Iain Burns on leaves of absence during the probe.
In early trading Thursday, shares of British Air lost $4.15, or 6.1%, to $63.64.Other airlines who said they are cooperating with the probe are AMR (AMR) and Virgin Atlantic, published reports said. Bloomberg quoted Virgin spokesman Paul Charles saying: "We are aware of the investigation and are assisting with inquiries.''
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV