British Airways is positioning itself as “a voice of reason” in the on-going debate over possible changes to the way UK travel agents pay for tickets.
Certain airlines are thought to be pushing Iata to alter the current Billing and Settlement Plan, making agents pay weekly rather than monthly.
However, Drew Crawley, British Airways’ chief operating officer, said the carrier was not one of the airlines leading the latest debate.
“We are providing a degree of measured response we are concerned with the number of defaults here in the UK and they have been going up,” he said.
“We are also mindful that we have a distribution, which apart those who default, works quite well and we don’t want to hobble in particular some of the small and medium sized enterprises who rely on that to grow their businesses and them growing their businesses grows the economy and we benefit eventually so there’s this balance.”
BA currently gives accredited agents about 50 days of credit. Varying remittance was a possibility but Crawley said that at the moment any change could not be justified because of additional administrative overhead costs.
"We try to be a voice of reason in this – protecting our business but also protecting the businesses of the distribution network"
“If we do change it or support a recommendation to change it in a moderated manner we would then review the impact of that and if there was still loads of defaults in a certain segment then we would look to address that in a different way,” Crawley said.
“But we try to be a voice of reason in this – protecting our business but also protecting the businesses of the distribution [network].”
Earlier this year Iata terminated the licence of AirFastTickets in the UK and in Germany with the firm owing €45 million. The company’s UK office went into administration in October.
Meanwhile, BA could also look to enter into further joint businesses in the future as it looks for more cost-effective ways to extend its global reach.
The carrier, which is part of International Airlines Group, already has agreements in place with American Airlines, Iberia and Finnair as part of a transatlantic joint venture but Crawley has said that additional partnerships are a possibility.
“The other thing that we shouldn’t lose sight of is our joint business with American Airlines and I predict there will be other joint businesses, I don’t know where and I don’t know when but they work well those joint businesses.
“[It] has enabled us to start flying from Edinburgh across the Atlantic with American Airlines and also [from] Birmingham.
“So what you’ll see is … a greater commitment, not just from BA but from our joint business partners as well. It is more efficient for our partner American to fly from one of their hubs into Scotland then it is for us to set up a small tiny hub up there which would not be economically efficient for us.”
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