[PeterCoultas]

TimFitzgerald: I’m probably missing something but surely increasing the avios needed for flights/upgrades decreases BA liability rather than increasing it?

[TimFitzgeraldTC]

Hi PeterCoultas

That is correct – but if they have “overstated” their liability (as an expense) to reduce taxes that are due to the exchequer they could be in trouble. So if this reduces the liability whilst allowing their current valuation to remain in place using the argument that the Avios are actually redeemable then the cynic in me says this is being done for purposes not fully being explained.

[PeterCoultas]

Hi TimFitzgerald – thanks for reply, I now think I understand – but its all accountancy to me!

[MrMichael]

If I was managing Avios at BA I would not have done it quite like this. I would have done what a few airlines have done by allowing people to bid for the upgrade……using Avios..cash or a combination. That way BA can increase its cashflow in, and burn off some Avios, possibly quite cheaply.

[ChrisJR]

I think this is a good idea provided, as others have said, it doesn’t result in reduced availability of redemption seats. I regularly travel to Abuja and Lagos in Premium Economy and am quite successful in getting avios upgrades to Business through the existing system, which is usually 6,250 points. Given you accrue more than this for the flight itself, it is very good value compared to other carries (I believe LH is 30,000 from Economy to Business on the same route, one way). I would happily pay twice the advertised avios points to upgrade if there is no availability. What will be interesting is to see whether it affects Business Class bookings, whether the offers will be contingent on the class of ticket booked in a given cabin, and what BA means by “targeted members”?

[FaroFlyer]

I think that it could make some sense, but would actually flip the system. I would increase the 5,000 level to 20,000 then discount for loyalty. Perhaps -75% Gold; -50% Silver; -30% Bronze and -25% Blue. The cost to BA of the upgrade is much lower for Gold & Silver as they have lounge access anyway.
Whenever I saw the £50 airport upgrade for ET to CE I always felt annoyed as they advertised it as having Lounge access as a benefit. As a Gold card holder I have lounge access anyway so it was £50 for a slightly better meal, and a miniature champagne. I didn’t ever pay.

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