Former BA Executive Pleads Guilty To Price Fixing

Washington, D.C. (AHN) - The former commercial general manager of British Airways' cargo arm pleaded Tuesday to price fixing charges and Keith Packer could get an eight-month prison sentence in the U.S.

As part of his plea bargain with the U.S. Department of Justice, Packer will be penalized $20,000 (11,222 pound) and must cooperate with the ongoing probe. The deal, which is subject to court approval, spared the ex BA executive from the maximum penalty of 10 years prison and $1 million (566,400 pound) fine.

The price fixing, which also involved Korean Air Lines, Japan Airlines, Air France, Cathay Pacific and Qantas, happened from March 2002 to February 2006. The officials of the five other air carriers have also been fined for their participation in the price cartel, although Packer is the first foreigner to be charged in the anti-trust investigation.

In another price fixing case under trial in Britain, four current and former BA executives may also face up to five years prison term in the U.K. for colluding with Virgin Atlantic to set fuel surcharges. For its role in the cargo rate and passenger fuel surcharge fixing, BA was fined last year by U.S. authorities and the Office of Fair Trading $480 million (271.5 million pound).

Whistle blower Virgin Atlantic was spared of punishment. The two air carriers have established a multimillion dollar fund to pay thousands of air passengers affected by their price fixing scheme.