The bust-up between British Airways and American Express has intensified today with Amex's travel management business informing the airline that the agency has de-listed it as a preferred supplier.
Neither side would comment on the latest twist in the commercial row stemming from BA refusing to accept the merchant fee on card payments for corporate net fare agreements in the United Kingdom as of June 1. Amex responded by threatening to terminate its business agreement with the airline. BA countered by filing a lawsuit last week against Amex alleging that the financial services company is in breach of contract by threatening to terminate the agreement.
The significance of the de-listing by Amex is not yet clear but it seems most likely that corporate clients without their own preferred agreements with BA will be steered toward other carriers when booking flights. Many smaller agents do this in any case because other mainstream airlines continue to pay commission. BA switched to a small flat booking payment last year.
The move by Amex's travel agency business also would suggest that negotiated rates for flying on BA would likely rise for all but the largest of the agency's customers.