29 September 2008

Growing pressure on BA to incorporate fuel surcharge

British Airways is coming under increasing pressure from corporates and travel management companies to stop separating out surcharges from its air fares.

Richard Tams, the airlineÃ¢â¬â¢s general manager UK and global corporate sales, told agents at the Advantage Travel Conference that as fuel prices rise, it was an issue that is increasingly Ã¢â¬Åâœoccupying our mindsÃ¢â¬~.

But he said there were two reasons why it was not easy to make the change.

Ã¢â¬ÅâœFirstly, itÃ¢â¬â¢s a logistical nightmare. Every time you want to put the fare up, you have to re-file every fare,Ã¢â¬~ he said.

Ã¢â¬ÅâœSecondly, if you bring the fuel surcharge in, it becomes discounted if you have a discounted rate.Ã¢â¬~

Tams admitted that it was ridiculous that an Ã&#pound;18 fare can come with Ã&#pound;80 worth of surcharges and taxes.

He said the airline would continue to look at the situation but there were no immediate plans to follow Emirates, which has managed to incorporate the charge.

Emirates national key accounts manager UK and Ireland, Graham Pepe, said it was easy for Emirates to bring the fuel surcharge back into its fares.

He said the airline was happy to give corporate discounts and pay agent commission on the full fare.

By Bev Fearis