Thanks to
phreegreens for the most recent re-write!
The discount
BA offers a 10% discount on flight costs to all eligible shareholders. This discount can be used to buy tickets for flights on
BA aircraft only. So, no discount on codeshares, JSA flights such as Qantas, etc. and definitely no ex-EU’s. This means that as BA does not have a trans-Pacific service, apart from on a Qantas code share, you will not be able to use the discount to build a “Round the World” fare.
Any travel booked using the discount must be entirely on BA aircraft, so whilst you could book LHR-JFK-BOS-LHR, using a BA codeshare on AA between JFK-BOS, the booking engine will not allow the discount on the outbound and return trans-Atlantic legs, even if they are on BA aircraft. The workaround is to book an “open jaw” LHR-JFK and BOS-LHR, on the same booking. JFK-BOS can then be booked separately. Open jaws are allowed, providing all the flights are on BA aircraft.
The discount will not be usable on the OpenSkies Europe-US services, as these are not BA “mainline” and also they are not from the UK.
How do I qualify ?
To qualify for the discount shareholders must hold a minimum of 200 ordinary shares (the one’s traded on the London Stock Exchange), on an annual qualifying date. The qualifying record date for 2011 is
29 October 2010, by which date you must have purchased your shares and they must have been entered on the share register. Do not leave it too late, the registration process takes a few days.
You have to be UK resident to benefit from this discount. BA have stated that they would like to extend the discount to shareholders resident in other countries, but currently local taxation reporting requirements make this impractical.
How do I book discounted tickets ?
After your first qualifying date as a shareholder you will be issued a shareholder reference number and a discount reference number. These used to come in the post, they now are issued by email. It is now a requirement in the discount terms that you have an email address registered with BA’s share registrars (Computershare). If you are a direct shareholder you can register your email address at
http://www.investorcentre.co.uk/britishairways if you have purchased through a nominee, they must register your address with Computershare.
The emails containing this year’s codes started arriving in inboxes on 1st December 2009. The subject line was “"British Airways Plc half-year results", so keep an eye open for emails from BA around the end of November, from the subject line it is sometimes not clear that the codes are in the email. Also, keep an eye on any spam filters you may have, a number of shareholders reported their codes ended up being caught by spam filters.
The reference numbers are used to access BA’s normal booking engine, through a link on the
BA Shareholders website. Here you will be able to buy the normal range of tickets, for all travel classes, with all the usual restrictions and clauses, but at 10% discount from the flight cost only. Taxes, fuel supplements, etc. are not discounted. Online is the only way you can use your shareholders discount, it cannot be used at travel agents, on the phone to BA, at BA offices or ticket desks.
When you are first issued with the reference numbers they will not be valid until January 1st of the coming year, you will not be able to get through the shareholders log on page until that date. Once you have access you will be able to book into the following year. So, if your codes are valid from January 1st 2010, as booking dates open up in 2011 you will be able to buy discounted tickets for travel in 2011.
(Note: The booking system requires a 10 digit s/holder reference number, but handy this, some of the codes BA sent out in 2009 had 11 digits. In my case I had to drop off a leading "C" which has not appeared in the past.)
Shareholders are entitled, with up to eight additional travelling companions on the same booking, to receive the discount; the shareholder must also travel on all sectors. This was a change to the rules for 2008 discount entitlement; previously it was up to 6 pax. including the shareholder.
The shareholder and accompanying pax who are members of the BAEC will earn the usual BA Miles and Tier Points, based on the ticket class and cabin travelled.
The T&C’s state that these discounted fares should only be used for leisure travel, difficult to know how they would check this though.
Exclusions
There are a number of exclusions, covering the use of the discount. Probably the most important is no Miles for Upgrade (MFU’s), so these discounted tickets are non-upgradable with BA Miles. Cash + Miles are also specifically excluded.
Shareholder discounted fares do not attract
BA On Business points, fairly obvious really as these fares should only be used for leisure travel.
Further exclusions are in the T&C’s, pretty much the use with any other promotion or vouchers, etc. is excluded. Although sale fares do usually attract the discount.
Dividends
BA paid a dividend in 2008. It wasn’t a lot.
If you held the minimum 200 shares it worked out at about a tenner, for which you were sent a cheque. After your shares have been registered, if you contact Computershare, they will send you a Dividend Reinvestment Plan (“DRIP”) form, so for any future dividends you will get shares instead of the payment. The number of shares is based on the value of the dividend and the market price on the day the dividend is paid.
You can contact
Computershare through the “Shareholder Services” page of their website.
Any other goodies ?
Some years ago shareholders used to get the odd little giveaway from BA, these seem to have dried up over the past few years. You do get an invite to the AGM, normally held in London, where you get a free cup of tea and to the chance to listen to the strategy for the coming year.
A few other points
If your shares are held in a brokers nominee account, your broker will have to contact BA’s share registrar to advise them of the nominee shareholding, this will trigger the issue of the codes. Reports on FT and other sites would indicate that some shareholders have had problems getting their 2010 codes, mainly as their brokers have not been responsive to requests to advise BA’s share registrars of the holding.
Direct shareholders do not have these problems, you may save yourself some hassle if you buy the shares in your own name and hold the certificate, rather than them being held in a brokers nominee account.
Full 2010 T&C’s for the Shareholders Discount can be found on the BA Shareholders website.
The bottom line !
The very simple version of the BA 2010 Shareholder Discount rules:
BA aircraft, shareholder and maximum eight additional pax, all on the same booking and travelling together.