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BA and ABTA at loggerheads over Fresh Approach
ABTA and British Airways look no nearer resolving their differences over proposed changes to the Fresh Approach payment scheme.
ABTA aviation board director Sandy MacPherson (Voyager Travel) has warned BA that it will go to the Office of Fair Trading if BA goes ahead with its planned changes – which according to Mr MacPherson represent “draconian reductions” on current payment levels. ABTA believes it can argue that BA is abusing its dominant position in the market.
Mr MacPherson told TravelMole: “We have prepared a submission for the OFT and that is where we stand at the moment. The only thing stopping us from pressing the button is that BA has not finally confirmed what they are going to do.”
He added: “I think our members will find what BA are talking about totally unacceptable. The indications I was given were appalling.”
As part of its Future Size and Shape review BA is understood to be planning to reduce discounted domestic and Euro Traveller payments from £6 to £3 and cutting full-fare domestic, Euro Traveller, Club Europe and discounted World Traveller fares from £11 to £6. In addition BA is also mooting the introduction of a flat £2.50 payment with a £5 upper limit, no matter how many sectors are travelled or the type of fare. Currently agents earn £20 per sector for full-fare World Traveller, World Traveller Plus, Club World, First and Concorde flights.
Mr MacPherson said ABTA would go to the OFT if any changes were made to Fresh Approach. He said: “Fresh Approach was their idea. They started it and said that it was a mechanism that would reward agents fairly. Nothing that has happened in the nine months since has changed that. September 11, Foot and Mouth disease and the economic decline have not in any way affected the work agents do on behalf of BA.”
A BA spokeswoman said: “We would never do anything that would contravene competition law. We are looking at all our costs as part of the total review of the business.”
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