BA to review contract with consolidators

BRITISH Airways has embarked on a long-term review of its deed of undertaking with consolidators as part of moves by the carrier’s bosses to save cash.

Currently BA takes responsibility for flying people home if a consolidator authorised to sell its flights goes bust. But the economic crisis suffered by airlines in the wake of last month’s attacks on the US has forced the industry to reduce its liabilities.

The carrier is now looking at a long-term plan to transfer the cost of supporting consolidators to travellers by introducing a ‘consumer levy’.

To improve cash-flow in the short term, BA is introducing a week-long ticketing deadline for consolidators from November 1.

Retail sales manager Carol Dray said: “If a booking is not ticketed within seven days of it being made, it will be cancelled.”

“This will help to reduce our liability and puts cash in the bank quicker.”

BA rejected a proposal put forward last week by the Association of Airline Consolidators, details of which Dray refused to reveal.

“The AAC proposal didn’t reduce our liability enough,” she said.