newman street ready to report BA to OFT

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.