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Amex row with BA is “dangerous”, says rival
American Express’s bid to end its merchant fee agreement with British Airways is a “dangerous proposition”, according to one senior travel management source.
BA has filed a lawsuit in the US aimed at stopping Amex from cancelling its agreement with the airline. Amex is seeking to terminate the relationship following BA’s decision – implemented on June 1 – to stop absorbing the merchant fee on corporate net rates in the UK.
One senior travel management figure said the importance of Amex’s card business was leading it to act against BA in the travel arena, when the two issues should be kept separate. He said: If you are a corporate company dealing with Amex can you be sure you are getting a non-biased travel management service? Personally I think it’s a dangerous proposition.”
An American Express spokeswoman said the current legal situation meant the travel management firm was unable to comment on the claims.
Amex is already charging its corporate clients a 2% handling fee on BA corporate net fares in the UK following the airline’s decision to stop absorbing the merchant fee on discounted corporate fares. Other business travel agencies are expected to follow suit and also pass on the cost to their clients.
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