BA warned of payment backlash

BA warned of payment backlash

Theannual BTI UK conference themed ‘The Money-go-round’ looked at finance and supply chains in an era where British Airways is pushing for a move towards service fees. Diane Smith reports

CORPORATES have warned British Airways that they are waiting to see what ticket discounts are on offer as a result of its new payment scheme.

Delegates pushed BA head of sales UK and Ireland, Tiffany Hall, to release details of expected ticket prices once BA drops commissions in April and resort to paying agents a fee for taking bookings.

Their argument is that prices have to come down in line with other airlines and to reflect the fact corporates are no longer going to get commissions returned to them.

Hall claimed she was restricted for legal reasons from indicating what the discounts may be at this stage because it would release information to BA’s competitors but she confirmed it would be reducing some fares.

BA said it was more committed to business travellers than it had ever been, with Hall adding: “We’ve definitely come to the realisation that we must work with corporate customers and we must understand their needs.

“What is clear to BAis that if we don’t respond to corporate clients then corporate clients will walk.

“We want to build relations with key corporates. We’re saying we are focusing more on the premium side of our business. Large and small corporates – they are the priority.”

But BTI UK’s chief executive officer David Ratcliffe warned: ‘If the discounts are not there it will cause a corporate backlash.”

A corporate delegate said to Hall: “BA’s fresh approach seems to be a fresh approach to increasing shareholders’ values.

“But the bottom line is how much will my customers be able to save?”

BA last week announced it was delaying its plans to axe commission from January 1 to April 1, blaming travel agents.

Although confirming that BTI had been ready for the January 1 deadline, managing director Mike Platt added: “BA spends half the time saying corporates are their customers so in a way we are helping if we advise any clients.”

Hall: under pressure to release details of expected ticket prices