BA Shareholders Discount
(with 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, from or within the UK 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 trip 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.
It is unlikely that the discount will 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 date for 2008 is November 7th, 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.
In all the recent turmoil on the markets BA shares have taken a right pounding. On October 14th the price was around £1.30/share, so it would cost you around £275 for the 200 qualifying shares and the dealing charges, so it’s a case of deciding if in the longer term this will be a good deal, based on your travel spend.
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, the past couple of years if you have an email address registered with BA’s share registrars (Computershare), you will receive the reference numbers by email. Look out for the email, it’s not obvious, the 2007 one came on November 27th with the title “British Airways Plc - Interim Results and Investor Magazine for Shareholders”
These 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 2009, as booking dates open up in 2010 you will be able to buy discounted tickets for travel in 2010.
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 is a change to the rules for 2008 discount entitlement; previously it was up to 6 pax. including the shareholder. This is specific in the revised 2008 T&C’s (para 6.) A dummy booking would suggest that the BA booking systems will allow up to nine pax on a shareholder discount booking.
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.
Shareholder discounted fares do not attract
BA On Business points, fairly sensible 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. At the AGM you may also get to sample the latest product innovations. Maybe a mock up of the new F cabin at the 2009 meeting ?
A few other points
Past few years, but obviously no guarantee that it will continue, the discount has been increased to 15% for bookings made in December.
If your shares are held in a brokers nominee account, your broker will have to contact BA on your behalf to get the discount codes. A bit of extra hassle, but reports on FT is that it is normally sorted quickly.
Full 2008 T&C’s for the Shareholders Discount can be found on the BA Shareholders website.
http://www.britishairways.com/travel...cugalias=tz503
The bottom line !
The very simple version of the BA 2008 Shareholder Discount rules:
BA aircraft and ex-UK origin only, shareholder must travel, maximum eight additional pax.