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U.S. and U.K. Agencies Investigating Fuel Pricing

June 23, 2006 By: Susan Young Travel Agent

Several major airlines have confirmed they have received requests or subpoenas from British and United States agencies regarding a possible conspiracy to illegally fix the amounts of fuel surcharges imposed on passengers on long-haul flights to and from Britain. The U.S. Justice Department and the U.K.'s Office of Fair Trade have contacted several airlines including British Airways, which said it was cooperating with the investigation and had given two executives leaves of absence during inquiry. American Airlines acknowledged it had received a federal grand jury subpoena on the matter, but said it was not the target of the inquiry. United Airlines also received an inquiry and was cooperating, but said it too was not a target. Virgin Atlantic Airways said it was aware of the investigation and cooperating. That said, the Office of Fair Trade said it was at an early stage and that media should not assume there has been a violation of law. Any violation of price-fixing laws could carry civil and criminal penalties. With fuel pricing soaring, most airlines have added a $64 or so fuel surcharge between the U.S. and London's Heathrow Airport. Consumer advocates believe that the surcharges can be a deceptive means for airlines to raise fares well beyond the higher fuel costs.

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