Convention Special: BA attacked over financial protection
British Airways was accused of having an arrogant approach to financial protection in a lively spat at one of the Travel Convention’s business sessions.
Sales and marketing director of British Airways Andrew Crawley re-iterated the airline’s stance that it did not want to levy a proposed £1 per person charge on passengers for financial protection.
“Why should we be paying for the customers of airlines who are in danger of going bust?,” he said. “We would be protecting other businesses and not ourselves.”
Crawley was on a panel with Monarch Holdings chairman Fabio Mantegazza and Hays Travel founder John Hays at the e-tid business breakfast briefing chaired by Eastcastle managing director Michael East.
But when questions went to the floor, former Hoseasons chief executive Richard Carrick criticised the airline.
“I’d like to ask Andrew what makes him think that BA can’t go bust,” he said. “I find it arrogant to say it won’t take on the protection for others.”
Crawley hit back by asking: “Do you think we should offer protection on behalf of the industry?”
Carrick responded: “I don’t think you are. Consumer confidence is fragile and is likely to get more so today (with the government spending review). Anything that helps it is good and if it costs £1, it’s good value.”
But Crawley stuck to his belief that it was not up to BA and its customers to pay the levy. “Don’t you think a company’s financial track record should be taken into account?” he asked.
The debate intensified when Lowcost group founder Paul Evans joined in, saying BA was missing an opportunity.
“This is a profit opportunity and you’re looking at it the wrong way. This can be an add-on and you could charge £2.50 for that. The Civil Aviation Authority has a difficult job of policing something that is unpoliceable and it’s the only way it will get sorted out.”
Crawley said he wanted to be able to decide if BA levied that charge and how much it would be.
By Jeremy Skidmore
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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