BA Cuts Short-Haul Fares, Ticket-Change Limits

British Airways on April 27 will reduce advance coach fares on short-haul flights from London by up to 50 percent, the carrier announced today. It also plans to move more seats into cheaper fare buckets and—most significantly for business travellers—scrap all restrictions on making changes to tickets.

Amendments to tickets can be made up to 24 hours before departure through the airline's Web site, via a travel agent or by telephone. An administrative fee of £30 (US$53) will be charged, with a possible additional fee if the change is made by telephone. The only exceptions are Tel Aviv, where the fee is £50 ($89), and Russian destinations, for which changes are not permissible.

The new flexibility on changes is in line with the terms and conditions of most European low-cost carriers, which continue to pile pressure on BA and other mainstream airlines. BA made its first major restructure of short-haul coach pricing in 2003, when it scrapped minimum Saturday-night stay restrictions.

Paul Tilstone, executive director of the United Kingdom and Ireland's Institute of Travel Management, gave a favorable reaction to the announcement. "This is great news for corporate travel programs in the U.K.," he said. "There are a number of companies where travelers buy the most expensive fares in case they change their itinerary. This should have a significant impact on buyers trying to address that problem."

Tilstone added that buyers would need to increase efforts to ensure travelers book BA flights through the managed travel program, rather than independently over the Internet.

A BA spokesman said the airline is carrrying out the latest restructuring to bring its average short-haul load factor of 75 percent nearer to the 85 percent enjoyed by such budget rivals as Easyjet and Ryanair. BA structures its short-haul fares by selling the cheapest bucket first before moving on to the next highest. The new lead-in fares will therefore mainly be attractive to leisure travelers able to book well in advance, but business travelers will benefit from the airline moving approximately 7 million seats into cheaper buckets.