BA's Race To The Bottom - Except On Prices!

The Telegraph reports that British Airways is racing to the bottom, wrt inflight etxras etc.

Disgruntled cabin crew have provided a list to BA management of recent changes they say are diminishing the carrier’s reputation, the Sunday Times reported, including the loss of first-class perks, such as free amuse-bouches with customers’ first drink, no more fresh flowers in the first class toilets, and the downsizing of complimentary washbags.

One cabin crew employee, who has been with the airline for 12 years, told the newspaper staff were “embarrassed by the state of the product. The only thing not being cut is the prices”.

www.baisshite.com the latest news and views on British Airways, the world's "favourite" airline.

BA Increases Fuel Surcharge

The Telegraph reports that British Airways has increased its fuel surcharge for the second time in two months, meaning that a family of four have to pay a £704 on a return long-haul economy flight.

"..BA's fuel surcharge on mid-haul flights is now just £3 less than it was in June 2008, when the price of a barrel of Brent crude oil peaked at $147 a barrel. The price this week rose to $103.."

BA are quoted:

"The move reflects the continuing substantial increase in the price of oil and a 14 per cent rise in the spot price of jet fuel since our last fuel surcharge increase in December 2010."

However, in October 2008 the Telegraph reported the following:

"The cost of fuelling a British Airways’ transatlantic flight can be covered almost entirely by the surcharges paid by its passengers, it has emerged.

Since May, BA has charged passengers between £78 and £98 in fuel surcharges for long-haul flights of less than nine hours. This earns the airline nearly £19,140 from surcharges on a 224-seat Boeing 777 flight from London to New York. The surcharges charged by Virgin are the same.

Airlines have long complained of the high cost of fuelling their planes. But tests by the manufacturer Boeing show that a Boeing 777 carrying 305 passengers – some 80 more than a full BA flight – requires 44 tons of fuel for a London-to-New York flight. This includes luggage and cargo. At today’s current oil prices ($800 a ton) this would cost the airline £20,173 – an amount that is almost covered by the extra fees levied on passengers..."

www.baisshite.com the latest news and views on British Airways, the world's "favourite" airline. This site contains updates on the ongoing strike action, and dispute between BA and Unite.

BA Merger With Iberia

It was announced today that BA may merge with Iberia, if a satisfactory resolution to BA's £2.6BN pension fund deficit can be found.

In the event that the merger does actually take place, I wonder what will happen to the price of flights to Spain?

See two articles I wrote in 2007:

The World's Costliest Airline

The World's Costliest Airline II

Will the consumer really benefit from this merger?

Why Fly BA?

Today the Money Blog asks whether there is any point in flying BA – or any premium airline for that matter – any more.

£10 Refunds

Here's an interesting story on the BBC site:

People who flew with British Airways or Virgin Atlantic between 11 August 2004 and 23March 2006 may be entitled to a refund of £10 per flight.

The law firm Cohen Milstein expects to sign an agreement later on Friday in a class action suit with BA and Virgin.

BA was fined by US and UK authorities for price-fixing on fuel surcharges while Virgin also admitted breaching US and UK law but escaped the fines.

BA declined to comment while Virgin could not immediately be reached.

The settlement would cover customers in the UK and the US.

Cohen Milstein estimates that the settlement will be worth about $200m (£100m), £73.5m of which will be set aside to pay claims by passengers who bought tickets in the UK in pounds sterling.

Passengers and businesses that bought tickets would be eligible for refunds of up to £10 for each leg of a journey.

BA was fined £121.5m by the Office of Fair Trading and $300m (£150m) by the US Department of Justice for colluding with Virgin on the level of fuel surcharges that would be added to their ticket prices.

Virgin escaped the fines because it had informed the authorities that the breaches had happened.

Viva Espana

I see that BA may be bidding for Iberia (it already owns 10% of the Spanish airline).

I wonder what that will do to the price of tickets to Spain?

See my earlier articles on the subject, where I encountered an "issue" with the pricing of tickets on the BA and Iberia websites:

-The World's Costliest Airline

-The World's Costliest Airline II

BA To Be Sued?

An American law firm is encouraging consumers in the UK to claim compensation from companies found guilty of breaking competition rules.

The company's UK branch is looking to sue British Airways and Virgin for hundreds of millions of pounds after they were found guilty of colluding over fuel surcharges.

It's just been given permission to go ahead with a class action against both firms in the US.

While Virgin escaped punishment for alerting authorities about what was going on, British Airways was hit by a record fine of more than a £121m after being found guilty by the Office of Fair Trading. The US Department of Justice imposed another £150m.

Channel 4 News

BA's Pricing

Now here's a funny thing, concerning the price quoted on the BA website for a first class return flight London/Beijing.

I was quoted a price of over £6500, were I to book a BA flight using the BA website.

However, the travel agency that I use quoted me a price of £4900 for the same flights. That is a saving of approximately 25%.

I wonder why there is such a discrepancy in quotes, given that the travel agency would still have to make a commission?

Needless to say, I made the reservation using the travel agency rather than the BA site.

The World's Costliest Airline II

Martin Waller in today's Times takes up the point that I raised a few days ago about the pricing disparity between BA and Iberia for the same flight to Barcelona.

He notes that BA's explanation for this disparity -

"BA claims that this is because it has the cost of the flight, while Iberia is merely issued with its own allocation of tickets."

- hardly makes much sense.

He then raises the question as to what will happen to the BA/Iberia flight prices, in the event that BA make a bid.

Will BA drop their prices or will Iberia raise theirs?

Maybe this very valid question should be raised with the Office of Fair Trading?

The World's Costliest Airline

Here's a little conundrum for you.

What's the difference between the following?

A business class return air ticket for two people (Gatwick to Barcelona), flight to be taken in July, purchased via Iberia.

A business class return air ticket for two people (Gatwick to Barcelona), flight to be taken in July, purchased via BA.

In terms of the departure times, airport terminals, lounge facilities and airline operating the aircraft...no difference whatsoever.

The flights are operated by BA.

However, here's the rub.

The price of the two return tickets, if purchased via Iberia will set you back £455.80.

The price of the two return tickets (for the identical flight), if purchased via BA will set you back a stonking £1165.80 (256% of the Iberia price).

Don't believe me?

Try it for yourselves:

-www.ba.com

-www.iberia.com

Could BA please explain this differential?

Oh, and by the way, BA own 10% of Iberia.