AMERICAN government prosecutors are preparing for the extradition of four current or former British Airways executives accused of involvement in a price-fixing scandal.

Lawyers from the US Department of Justice have notified the men’s lawyers that they will want to talk to them. The “BA Four” could face more than 20 years in jail if they are extradited and convicted in a US court.

A team from the department has visited Britain and other European countries to gather evidence for a possible prosecution. It has established a federal grand jury to consider whether charges should be brought.

The case is also being investigated by the Office of Fair Trading (OFT) in Britain.

In 2004 and 2005, both BA and Virgin imposed a series of almost identical fuel surcharges on London-New York flights. The price rises, which cumulatively added £70 to the price of a ticket, were in some cases announced by both airlines within days of each other.

At the time, BA said it was simply reacting to rises in the price of aircraft fuel. However, American investigators have obtained telephone records that allegedly show two BA executives talking to two Virgin executives at key moments in the run-up to the price rises.

This month BA admitted that it had breached competition laws. Willie Walsh, its chief executive, said nine days ago that the airline had set aside £350m to cover any legal case.

It had previously been thought that only two BA executives were involved in the inquiry. Martin George, BA’s commercial director, and Iain Burns, its head of communications, were both given leave of absence when BA revealed the existence of the inquiry last June. They resigned last autumn.

It has now emerged that two other BA executives, who still work at the airline, are being investigated. American legal sources said one was a senior executive in the marketing department, the other a rising star on the commercial side.

The case of the BA Four is threatening to revive concerns about an extradition treaty that ministers signed with America in 2003. It has been criticised as one-sided because it allows America to obtain the extradition of British citizens without prima facie evidence. Far tougher rules apply if Britain seeks to extradite American citizens.

The alleged price-rigging emerged when Virgin decided to notify the OFT early last year. Under the 2002 Enterprise Act, a company that tips off the authorities about an alleged offence and provides evidence to support a prosecution can be granted immunity from prosecution.

The act allows for fines of up to 10% of a company’s turnover. Individuals found guilty of price-fixing face up to five years in jail. The maximum sentence for price-rigging in America is life imprisonment.

The OFT has never prosecuted an individual for price-rigging. If it does not do so now, this will leave the way open for America to apply for extradition of the BA Four.

The US justice department declined to discuss the case, although it is known that several US and European airlines are under suspicion. It said: “The antitrust division is investigating the possibility of anticompetitive practices involving surcharges and rates for passenger fares and air cargo shipments. We do not discuss individual companies.”

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