Now here's a surprise from Finance Week
An A for BA
MORE than half of South Africa’s top 40 companies – 57% of them in fact – fly British Airways domestically and internationally. The balance use SA Airways – the country’s “national carrier”, Virgin Atlantic, Lufthansa and a few others internationally or a combination of one or more airlines.
A mining company that only flies with BA says the choice by many of SA’s leading corporates to fly with the carrier is prompted by a number of factors. The mining company executive (who asked not to be named) says that BA offered the best deals to corporate flyers plus its facilities, such as airport lounges, particularly at London’s Heathrow, were unmatched for executives flying into Britain or in transit and needing to rest and refresh.
Another bonus is BA’s flatbed, which is standard on all international flights in business and first class. He added that the reason many choose not to fly SAA was its unwillingness to negotiate mutually beneficial packages.
Many of SA’s Top 40 companies have huge travel budgets; one company spends around R40m/year on air travel alone. However, BA International commercial manager Lin Glass says that she couldn’t name the companies who used BA exclusively – or in conjunction with other airlines – due to confidentiality agreements with clients and that individual contracts with corporate clients were also secret.
However, Glass believes that the popularity of BA over SAA, Virgin, Lufthansa and other major airlines that fly into SA is based on the product offering, the airline’s global network, favourable flight schedules and customer service.
All airlines must tender for major corporate business in SA. Companies tend to shop around for the best deals and services to suit their pockets and travel requirements. BA is also the contracted carrier of SA Rugby.
A spokesman for SAA says that the airline couldn’t divulge which Top 40 companies fly with it on contract or what percentage used it exclusively or in conjunction with other airlines, citing strategic competitive reasons and client confidentiality.