British Airways has raised pricing on its short- and mid-haul awards without notice. As usual, the problem is not with the devaluation, but with the lack of communication surrounding it.
British Airways Increases Shorthaul Flight Pricing By 750 Avios
Prices have risen without notice by 750 Avios per redemption, for zones 1-3 (flights 2,000 miles and under). That is an increase in price between 4-19%.
Zone 1 awards (1-650 miles):
- Economy (off-peak) – 4,000 to 4,750 Avios
- Economy (peak) – 4,500 to 5,250 Avios
- Business (off-peak) – 7,750 to 8,500 Avios
- Business (peak) – 9,000 to 9,750 Avios
Zone 2 awards (651-1,150 miles):
- Economy (off-peak) – 6,500 to 7,250 Avios
- Economy (peak) – 7,500 to 8,250 Avios
- Business (off-peak) – 12,750 to 13,500 Avios
- Business (peak) – 15,000 to 15,750 Avios
Zone 3 awards (1,151-2,000 miles):
- Economy (off-peak) – 8,500 to 9,250 Avios
- Economy (peak) – 10,000 to 10,750 Avios
- Business (off-peak) – 17,000 to 17,750 Avios
- Business (peak) – 20,000 to 20,750 Avios
The devaluation is arguably unreasonable during a global pandemic in which people have been stuck at home. Indeed, it seems British Airways is capitalizing on consumer’s pent-up urge to travel by raising prices ahead of what it hopes will be a busy summer travel season within Europe.
But no notice? And I literally mean no notice, not just no advance notice. Even today British Airways has not issued a statement even confirming that prices went up.
The lack of notice is the real problem here and British Airways has once again showed a fundamental disregard to its Executive Club members.
CONCLUSION
I’ve long warned that miles and points are depreciating assets meant to be spent, not hoarded. Nothing changes in terms of that general advice. But there’s an implied contract of good faith and fair dealing here…if I entice you to collect miles and save up for an award, it’s manifestly unreasonable to inflate the price without notice.
Thus, British Airways merits our scorn today. Not so much for being greedy during the pandemic, but for failing to respect members by giving them advance notice of the changes.
Does the British Airways 2021 Avios devaluation hit you where it hurt?
(H/T: Head for Points)
“But there’s an implied contract of good faith and fair dealing here.” That may be true on BA but certainly not it’s BFF AA! “Terms and Conditions disclaim any duty of good faith and fair dealing as well as any implied contractual terms or obligations.” As “victims” of AA CorpSec found out. https://www.aa.com/i18n/fragments/aadvantageEnrollment/termsandconditions.jsp
Just because AA tries to contract out of this via adhesion, I’m not sure it is legally binding.
Another plus is BA is anti-slavery whereas AA is not! https://www.iairgroup.com/~/media/Files/I/IAG/Modern%20Slavery/2019%20Modern%20Slavery%20Statement%20Final.pdf
Here is the UK legal position in terms of good faith in contracts. It would be interesting to have a case defining whether FFPs are considered to require a ‘significant investment’ for members wishing to collect enough miles for an award.
https://www.kwm.com/en/uk/knowledge/insights/implied-duties-of-good-faith-when-do-they-apply-20200501