What Were They Thinking PT 2?
Two British Airways executives have quit in response to a fuel-surcharge fixing scheme.
As read here, (http://today.reuters.com/news/articleinvesting.aspx?type=governmentFilingsNews&storyID=2006-10-09T094454Z_01_L09205863_RTRIDST_0_AIRLINES-BRITISH-AIRWAYS-UPDATE-2.XML) they attempted to communicate their intentions with Virgin Airways, who in-turn reported them to the British OFT.
This harkens back to the Field of Dreams quotation, “If you build it they will come,” only it should read “If you do it you will get caught.”
BA faces stiff penalties if found to be price fixing. Obviously the executives at BA have never encountered Game Theory. They may have made some money in the short run, but they will have to pay probably three times as much back in penalties.
This simply proves that the consequences of our actions affect more than just ourselves. I think these guys should have taken W204 before their promotions. A little ethical dilemma that could have been avoided may cause one of the biggest airlines to pay $560 million dollars. Things are not looking good because of the recent hits the airlines have taken in response to 9/11 and increased fuel prices and a fine that large will not help this company either.
As read here, (http://today.reuters.com/news/articleinvesting.aspx?type=governmentFilingsNews&storyID=2006-10-09T094454Z_01_L09205863_RTRIDST_0_AIRLINES-BRITISH-AIRWAYS-UPDATE-2.XML) they attempted to communicate their intentions with Virgin Airways, who in-turn reported them to the British OFT.
This harkens back to the Field of Dreams quotation, “If you build it they will come,” only it should read “If you do it you will get caught.”
BA faces stiff penalties if found to be price fixing. Obviously the executives at BA have never encountered Game Theory. They may have made some money in the short run, but they will have to pay probably three times as much back in penalties.
This simply proves that the consequences of our actions affect more than just ourselves. I think these guys should have taken W204 before their promotions. A little ethical dilemma that could have been avoided may cause one of the biggest airlines to pay $560 million dollars. Things are not looking good because of the recent hits the airlines have taken in response to 9/11 and increased fuel prices and a fine that large will not help this company either.
posted by Kyle at 12:37 PM
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