British Airways has been dropped by BP as the preferred airline for the company, as many companies have been stripping back costs associated with business travel due to the global economic situation.
BP said on Tuesday that, as part of cost saving measures, the company will now choose flights that offer the ‘lowest logical fare’, said a company spokesman.
He added that the company would continue to use British Airways if they were the cheapest or the only airline to service certain destinations, but said there was too much commercial pressure on the airline industry to offer corporations who fly frequently cheaper fairs.
A British Airways spokeswoman said: ‘All of our corporate agreements are confidential. We continue to work closely with all our corporate partners to meet their requirements in these challenging times. We are confident in our ability to provide competitive travel arrangements for all our partners on our extensive global network.’
BP has said employees would not be able to fly business class on domestic routes, but could for long-haul routes.
The company has already reached their cost-cutting target for this year, totalling $2 billion and is expecting to save another $1 billion in cost-cutting measures by the end of the year.
Thanks to the Wall Street Journal for the above quotes. For more information visit their website.
