p12-13 jan30 28/1/09 20:15 Page 12
news Willie Walsh interview
ttglive.com
BRITISH AIRWAYS chief executive Willie Walsh
BA taps India but
has claimed his airline was one of the “least
aggressive” in moving to zero commission.
He said the airline had hit and was maintaining
its target of ensuring agents account for no more
than 50% of BA sales.
Walsh was in Hyderabad, India, where BA is
plans move to 0%
duplicating its UK distribution strategy by cutting
commission from 7% to 0% in April.
Singapore Airlines, Lufthansa and Air France/
KLM have already ditched commission in India,
leading to boycotts and calls for nationwide
protests. But Walsh thinks BA’s move to 0% will
British Airways boss Willie Walsh is confident the new direct
go smoothly in India because agents expect it.
Hyderabad route serving India’s growing high-tech industries “It will be like the UK, where the trade adapted
will be a success, but his intention to ditch commission has
and in many cases welcomed it,” he said.
angered agents in the country. Chris Gray reports from India
“Those that are confident about being able
to provide a quality service to their customers
believe it’s a better way of operating.”
Richard Tams, BA’s new head of leisure and
corporate sales, has said he wants to continue
his predecessor Adam Daniels’ efforts to “mend
fences” with the trade (TTG January 23).
But Walsh denied BA was aggressive in deal-
ing with the trade when it dropped commission.
“Maybe that’s the perception, but we were
probably the least aggressive of the major air-
lines in dealing with the trade; in my time at Aer
Lingus we were much more aggressive,” he said.
“We have made it clear we want to work with
the trade on an ongoing basis, so we are not
trying to put them out of the picture. We see
them as an important part of distribution.”
Third runway ‘crucial’
Walsh said BA’s new direct flight to Hyderabad
was evidence of the need for a third runway
at Heathrow, because about two-thirds of its
passengers transfer at the airport.
The new route would not be viable without
the transfer traffic and if Heathrow did not tackle
its congestion problems that transfer traffic
would go elsewhere, he said.
“The only way you can sustain Heathrow
as a strong international hub that benefits
London as a whole is if
we supplement direct
traffic with transfer
traffic.
“Heathrow is not
just about serving
London, it’s compet-
ing with other inter-
national hubs.
“It’s in competition
with Dubai. Dubai’s
stated intention was
to replace London.
They want to move fi-
The Charminar monument in Hyderabad, built in 1591 Walsh: “We want to work with the trade” nancial services from
12 30.01.2009
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