BA yet to reach deal with GDSs

Britain’s flag carrier is still playing hard-to-get with the four main global distribution systems.

At press time, a British Airways spokesperson said the situation remained the same as late last week, when Travolution reported that both sides had yet to reach an agreement following the 28 February expiration of BA’s former GDS contracts.

However, sources close to the negotiations say the talks are at least advancing somewhat.

BA is allegedly still using the threat of agency surcharges as its main bargaining tool. The carrier says it will not charge agents today, but that could change.

A likely scenario is that the GDSs will wave their fees in certain geographic regions where BA has a stronghold, as well as in those markets where it faces the toughest competition from low cost carriers.

Meanwhile, BA is still paying GDS rack rates, which amount to roughly twice the amount it was paying under its former contracts.

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