Time running out for BA as ABTA prepares to make OFT decision

Thursday, 25 Apr, 2002 0

ABTA looks almost certain to press ahead with its decision to take British Airways to the Office of Fair Trading over planned changes to the Fresh Approach agency payment scheme.

Aviation board director Sandy MacPherson (left) told TravelMole that ABTA had been “canvassing information from virtually every retail member” about how the changes would impact on their businesses. The findings are due to be presented at a Board of Directors meeting next Wednesday (May 1) when a decision will be taken.

Mr MacPherson said: “Things are moving very swiftly. Both the ABTA Council of Regions and the ABTA Aviation Committee have said they expect to go to the OFT with this and the message coming loud and clear from agents is they expect ABTA to stand up and be counted.”

“BA argue they have had to make the changes because of September 11, but that’s not acceptable. Nothing has changed in terms of the work agents are doing. If anything they are working even harder to get what business there is so should be being paid more.”

He pointed out that there was “no way” the new payments of £2.50 for non full fare domestic and European tickets and £5 for full fare and European flights would cover the cost of the work involved for agents and added that it wasn’t a simple matter for agents to suddenly start charging fees to their clients instead. He said: “It would be naive to say that the industry doesn’t recognise that there’s going to be more of a fee paying culture but we are a long way away from that and is not going to be that easy. A lot of clients will not want to pay.”

See our previous stories:

16 Apr 2002: bmi says it won’t adjust commission until October
13 Feb 2002: BA cuts Fresh Approach payments
23 Jan 2002: BA and ABTA at loggerheads over Fresh Approach

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