onobond

Tried to search if there already was a thread to add new info to, only found how to 'avoid' APD, but Mods feel free to merge if a thread already exists.

Needing a ticket a specific date +/- 1 day, in Club/Business, travelling SFO-ARN, I searched for options. Date-, aircraft- and timewise the best travel option was with AY, going SFO-HEL-ARN, 1h 40m layover in HEL, arrival ARN late afternoon.

With BA, the cost was 84K Avios + $633.94 for taxes, fees and carrier charges. N.B. nothing said about intermediary airline charges, only for carrier. So, logged in to my AA account, found the same flights for 57.5K AA miles, but only + $10.60 for taxes, fees and carrier charges. For comparison, the earning of Avios vs AA miles, flying on a revenue ticket in I fare class are pretty much proportional to the difference in Avios/miles, at least for OWEs (GCH and EXP).

But where does the difference of $623 go? Taxes and fees at SFO & HEL are the same, and the AY carrier surcharge would not be 589% higher when BA is the intermediary, as compared to AA.

In the latest of threads discussing the BA routine of charging non-elite cardholders fees for seat selection in Club, one poster called it "daylight robbery", but that was for fees like a tenth of what's described above. Personally, I would maybe use milder terminology, but what would be the appropriate term for this strange routine? Has BA given any explanation for this gigantic own surcharge for redemption on a partner airline?

mikeyfly

Quite well noted around here about the outrageous fees exUS on BA - see the first posts in Spending Avios thread

https://www.flyertalk.com/forum/30593370-post2.html

JAXBA

The YQ/YR carrier charges that BA collect on redemption bookings are the same that quote with a published fare paid with money. BA doesn’t set the amount, but they do collect it, just as they expect their own surcharges to be collected by partners issuing award tickets for BA flights.

AA generally doesn’t collect the amounts (unless contractually expected to, such as for BA).

As far as we know, the money goes to the airline you’re flying on.

craigthemif

BAEC doesn't have to explain anything, and usually doesn't. They run what they consider to be a successful business model, both as the airline and the Avios scheme. They can charge whatever they want for whatever routes they choose, and you have the choice to not book anything.

You might gain more understanding by flipping the question. Why do American frequent flyer programmes not charge surcharges? They could, and maybe even should, but that might kill the credit card bonanza, especially if competing airlines didn't follow suit. BA doesn't have that kind of competition to worry about.

fotographer

That is why when you are trying to book award tickets from the US.. BA always seems to have space... no one wants to pay the high fees, which in some cases are the same has actually buying the ticket..

bluesky3000

Yup crazy prices, did anyone manage to avoid or somehow subsidized it