British Airways axes outsourcing programme

British Airways has ditched plans to outsource elements of its main ba.com website to third party technology players.

The airline, which began talking to a number of companies late last year, had been seeking to create efficiencies and reduce costs by finding different ways of working.

Travolution understands that it costs the airline in the region of £30 million annually to run ba.com.

It is believed however that the expense of putting the business out to tender including the employment of consultants has proved too deep for the airline’s pockets in the current climate.

A BA spokeswoman said: “We did launch a procurement process to see if there were any further efficiencies they we could achieve with ba.com at this stage.

“Due to the economic crisis, we are currently concentrating on core business and have put the formal process on hold.”

She added the airline would continue to speak to a number of players about new products to ensure it kept up with developments in the market. 

It is believed at least one of the global distribution giants was involved in discussions for the outsourced work as well as US-based ITA Software.

British Airways reported its worst ever loss of £401 million last month citing fuel costs and economic factors such the weak pound and a slump in demand in premium traffic.

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