Nov 13, 2012, 5:45 pm
Last edit by: JDiver
MODERATOR NOTE
Awards using British Airways / BA incur significant surcharges compared with most other oneworld airlines or AA partner airlines. This thread explores the nature of these surcharges and how to determine what they will be.
Awards using British Airways / BA incur significant surcharges compared with most other oneworld airlines or AA partner airlines. This thread explores the nature of these surcharges and how to determine what they will be.
BA / British Airways copay / surcharge & increases (consolidated)
Nov 17, 2010, 10:26 am
#1
FlyerTalk Evangelist
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BA / British Airways copay / surcharge & increases (consolidated)
Effective today, Wednesday November 17, 2010, British Airways will increase the fuel surcharge for all tickets issued in US, for travel originating in the US to Europe* (excluding the UK).
The fuel surcharge will increase from US$250 to US$260 round-trip, (US$125 to US$130 one-way) on journeys from the US to Europe only.
Fuel surcharges to all other regions and segments will remain unchanged.
*Europe does not include United Kingdom, Ukraine, and Russia.
The fuel surcharge will increase from US$250 to US$260 round-trip, (US$125 to US$130 one-way) on journeys from the US to Europe only.
Fuel surcharges to all other regions and segments will remain unchanged.
*Europe does not include United Kingdom, Ukraine, and Russia.
Nov 17, 2010, 11:46 am
#2
Join Date: Jan 2007
Location: NYC
Programs: AA EXP (LT Plat), HH DIA, Hyatt DIA
Posts: 456
I don’t intend to minimize the effect of 5 extra bucks, each way per U.S.-Europe award for BA's bottom-line, but it really seems like the timing of this announcement (so soon after AA FFs have to start paying the fuel surcharges) is like rubbing salt in the wounds.
Safe Travels
Safe Travels
Nov 17, 2010, 12:55 pm
#3
Join Date: Feb 2008
Location: USA, Europe
Programs: AAdvantage, Flying Blue, Mileage Plus
Posts: 839
Here's something I've been wondering: does AA levy a fuel surcharge for those redeeming awards through BA? If not, then I think that this new TATL JBA really puts AAdvantage people at a disadvantage (no pun intended). Whereas before, BA members couldn't redeem TATL awards on AA metal, now they can do so and if AA doesn't have a fuel surcharge but BA does, then it would stand to reason that more BA people are going to redeem their miles on AA, thereby decreasing overall award availability on AA.
Nov 17, 2010, 2:34 pm
#4
Join Date: Oct 2002
Posts: 1,701
So this increase also, I assume, applies to AAdvantage members redeeming for BA flights trans atlantic.
Do we have any condfirmation or good insight that BA actually gets this $ if ticketd by AA -- or is AA pocketing this $.
Do we have any condfirmation or good insight that BA actually gets this $ if ticketd by AA -- or is AA pocketing this $.
I don’t intend to minimize the effect of 5 extra bucks, each way per U.S.-Europe award for BA's bottom-line, but it really seems like the timing of this announcement (so soon after AA FFs have to start paying the fuel surcharges) is like rubbing salt in the wounds.
Safe Travels
Safe Travels
Nov 17, 2010, 10:54 pm
#5
Join Date: Sep 2004
Location: The World!!!
Programs: Some of them not all ...
Posts: 1,532
Wow, this only makes me fly BA for the miles (now 100% on AAdvantage) and redeem on AA. I went to the World Cup flying BA Club World on an award ticket, and NO fuel surcharge for those tickets. Now, I don´t plan to fly BA on award tickets anymore, unless it is extremely necesary. Only paid on BA and getting full miles on AA.
Nov 17, 2010, 11:43 pm
#6
Join Date: Sep 2005
Posts: 2,731
However, since AA/BA are in a ATI and there is now an extensive partnership in place, it would be reasonable to assume that AA remits the fuel surcharges to BA (especially since AA does not otherwise impose fuel surcharges on non-BA redemption).
Nov 18, 2010, 6:46 am
#7
Join Date: Oct 2002
Posts: 1,701
This has been my understanding...
So basically, AA is using blaming BA when in fact, AA is either keeping the revenue or at least sharing in it.....
And I am making the assumption that if you use an AAdvantage award on BA foam say SYD-BKK, where is no ATI, it is AA that is pocketing this fuel surcharge.
AA Mgmt must be dancing through the halls at Centerpoint that they have effectively created a high copayment system that has a nutural price inverse built in as file goes up.
So basically, AA is using blaming BA when in fact, AA is either keeping the revenue or at least sharing in it.....
And I am making the assumption that if you use an AAdvantage award on BA foam say SYD-BKK, where is no ATI, it is AA that is pocketing this fuel surcharge.
AA Mgmt must be dancing through the halls at Centerpoint that they have effectively created a high copayment system that has a nutural price inverse built in as file goes up.
From what I understand, unless otherwise arranged, fuel surcharges are kept by the ticketing carrier, not the publishing carrier.
However, since AA/BA are in a ATI and there is now an extensive partnership in place, it would be reasonable to assume that AA remits the fuel surcharges to BA (especially since AA does not otherwise impose fuel surcharges on non-BA redemption).
However, since AA/BA are in a ATI and there is now an extensive partnership in place, it would be reasonable to assume that AA remits the fuel surcharges to BA (especially since AA does not otherwise impose fuel surcharges on non-BA redemption).
Nov 18, 2010, 8:29 am
#8
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AA is financially benefiting from fuel surcharge money collected by it on AA-issued award tickets that include BA flights. This is the result of the government allowances permitting AA to collude with BA and have a TATL JV with revenue-splitting.
Nov 18, 2010, 8:37 am
#9
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It's possible to find regular paid roundtrip tickets connecting the US with Europe on other carriers that cost less money than it does for the cash co-pay applicable to AA-issued award tickets with BA flights on them.
Nov 18, 2010, 11:18 am
#10
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I'm still not clear on the BA-operated surcharge fees. Is it only for long-haul flights? For example if an AAdvantage award ticket is LAX-LHR (AA)-VIE (BA) is there still a fuel charge? Or would it only apply if LAX-LHR were on BA metal?
Nov 18, 2010, 1:18 pm
#11
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No, AA has modified the program as result of the ATI and it collects co-pays on all redemptions on BA metal, including those that have always been free. In your example there would be a co-pay for the LHR-VIE segment where up to a month ago there used to be none.
Nov 18, 2010, 1:22 pm
#13
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I'd love to find historical data graphing the fuel cost and the fee amounts.
Nov 18, 2010, 2:24 pm
#14
Join Date: Jun 2008
Location: London
Programs: AAdvantage, and BAEC in name only
Posts: 803
I suspect that this number will be less than you might expect given the logic. BAEC members are of course well used the the surcharges on award travel and the small sample (two) I know would not consider the saving worthwhile in order to fly what they consider to be an inferior product. Their choice.
Nov 18, 2010, 3:44 pm
#15
Join Date: Oct 2002
Posts: 1,701
As seen via a few reports from other FTers, I would expect seeing increased instances of no AA availability but plenty of BA availability...all so AA can collect a copay