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Corporates petition BA over GDS fees
More than 60 companies are threatening to boycott British Airways after voicing “profound concern” over reported plans to impose new GDS surcharges.
The Business Travel Coalition is co-ordinating a campaign against the changes – being seen as the airline attempting to drive more business online to BA.com – and has attracted support from 64 corporations such as Philips Electronics and PricewaterhouseCoopers.
A petition letter is being prepared to be sent to BA chief executive Willie Walsh warning that they will switch their business travel to rival carriers if the airline goes ahead with the plans.
The letter says: “We are writing to express our profound concern about your airline’s reported intentions to undermine our existing corporate travel procurement process by imposing new surcharges and withholding content from the GDSs and the travel management companies and corporations they serve.
“This trusted, established channel provides efficiency and global services for our companies. Such negative actions on your part will make it more difficult and expensive for our companies to continue purchasing your product.”
BTC chairman Kevin Mitchell is urging UK corporate travel managers to sign the petition by February 20, prior to “watershed” long-term airline-GDS agreements coming up for renewal at the end of the month.
The coalition claims that with its complex connecting network and global reach, BA “arguably derives more value from GDSs and travel management company distribution than any other airline in the world.
“Our companies demand a vast array of pre- and post-trip services your airline website simply cannot accommodate.”
The letter to Walsh goes on to say: “BA’s easy availability and strong participation in the GDSs gives your airline a decided advantage in securing a premium share of our business. It is therefore most surprising that you would risk this advantage by reportedly threatening to remove content and shift further cost burdens to us and other important distributors of your services.”
One GDS approached by TravelMole claimed that it generates billions of dollars in sales for BA while what the airline pays in return is in the millions.
A BA spokesman said that while negotiations are continuing with all the GDSs he was unable to comment, other than to recognise that “issues” exist.
by Phil Davies
Phil Davies
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