AGENCY consortia are preparing to stand their ground
against British Airways in a move that could see thousands of agents selling
away from the national carrier.
Five major consortia – Advantage Travel Centres,
Worldchoice, Global Travel Group, Midconsort and Travelsavers – are telling
their 2,500 combined members to make up their own minds if it is economically
viable to sell BA tickets from June 1.
Worldchoice chairman Colin Heal said a lot of work
went into persuading members Fresh Approach was a “satisfactory proposal” for
agents. This time around there is no support for BA, he said.
“I can’t tell my members not to sell BA. What we are
saying is it’s up to them. If members decide they are unable to charge a fee,
what they do is up to them.”
Midconsort managing director Charles Eftichiou said
now was the time for agents to use their combined power to switch-sell.
“I’m telling members to put their fees up and look at
alternatives to BA. Agents will vote with their feet.”
Global Travel Group business development director Sue
Foxall added: “Up to 80% of BA’s business comes from the trade. If the
consortia take a stand BA would lose a hell of a lot more than £2 million a
day.”
Advantage sales and marketing director Colin O’Neill
supports ABTA’s decision to fight BA through the Office of Fair Trading, while
Travelsavers managing director Ken McLeod said he did not support any airline
that “cuts out the travel agent”.
ABTA president Stephen Bath backed the consortia. “Two
years ago we were accused of cosying up to the enemy. This time around the
enemy’s plans are so anti-trade that we don’t want to be seen to be seen
consorting with it,” he said.
ABTA reiterated its stance against BA with the
unanimous vote last week to complain to the OFT. Its case hinges on two arguments:
the trade’s dependence on BA and the airline’s undertaking to provide a ‘fair
reward’ for agents under last year’s Fresh Approach scheme.
ABTA’s legal department is consulting barristers
before pursuing the case.
Melanie Laithwaite, a commercial lawyer specialising
in competition law at London-based DJ Freeman, said ABTA could win if it proved
BA had a 40% hold over the market in terms of its products and geographical
reach.
A BA spokeswoman said: “We
understand this is not going to please everyone, but we work closely with key
travel partners and are confident they will work with us.”