ABTA is preparing to put the boot into British
Airways’ plans to radically alter Fresh Approach by making a complaint to the
Office of Fair Trading.
In a final show of defiance against BA, legal advisers
at Newman Street are gathering evidence to support their case that BA is
abusing its dominant position.
Newman Street claims not to have shut the door on
future talks with BA, but is threatening to go to the OFT if they fail.
ABTA aviation board director Sandy MacPherson said
BA’s plans to reduce booking payments were appalling, given the carrier’s
assurances a year ago that Fresh Approach would not be altered for at least two
years.
He said: “What vexes me is that Fresh Approach was not
universally popular at the start. Since its inception agents have settled down
and started working with it.
“Now, just when they are getting to grips with the
scheme, it’s going to be changed again. This a 180 degree turn and it’s just
not on,” he added.
ABTA legal adviser Simon Bunce said: “The UK agency
network is dependent on BA and the carrier has only reached this position due
to the support of agents. It can’t now turn round and pull the plug.”
Current proposals featured in BA’s Future Size and
Shape review – expected by mid-February – include a flat £2.50 payment with a
£5 cap, regardless of the number of sectors, fare class or type, and a
reduction in short-haul and domestic payments of £6 and £11 to £3 and £6
respectively.
BA is also looking to switch its agent helpline
Rapport – which costs £6 million a year – to an 0870 premium rate telephone
number, while wasted calls are directed to its trade extranet. Rapport takes
115,000 calls annually, of which 80% are wasted. Job cuts at BA’s 100-strong
Rapport office are likely.
BA head of UK and Ireland sales Tiffany Hall said it
would “never do anything that contravenes competition law”.
BA director of worldwide sales Dale Moss told Travel
Weekly agents should “wake up” to the changes ahead.
“There’s a small minority of agents who think they are
entitled to BA’s business just because it’s been that way for years,” he said.
“They should wake up.”
* In a separate move, BA is
quitting its offices in Mayfair, London to cut costs. The airline is reportedly
aiming to save a ‘significant’ amount of money by moving out of the Berkeley
Square offices, currently used to host central London visitors and as an
alternative office by chairman Lord Marshall.