Greener British Airways 'washes its hands' of loyalty leisure travellers

Sustainable aviation fuel credits become eligible for tier points but frequent flyers accuse airline of ‘greenwashing‘ its loyalty system revamp

From January 1, Sustainable Aviation Fuel must make up at least 2 per cent of all jet fuel used in UK commercial flights this year. Photo: Nick Morrish

British Airways has been accused of greenwashing after sustainable aviation fuel (SAF) credits were included in a disputed overhaul of its tier points system that has sparked a backlash.

From April, executive club members will be able to earn up to 1,000 tier points a year through purchasing a contribution to SAF. From January 1, all flights from UK airports must now use a minimum amount of lower-carbon jet fuel, after the introduction of the government's SAF mandate.

Flights by the carrier are becoming less carbon intensive. By law, SAF must make up at least 2 per cent of all jet fuel used in flights this year, and the percentage will rise every year, reaching 10 per cent in 2030 and 22 per cent by 2040. SAF has drawn some criticism recently, with the co-founder of AirAsia, Tony Fernandes, saying it makes "absolutely no sense" in helping the aviation industry achieve its sustainability goals.

Rob Burgess at the UK's largest frequent flyers' website, Head for Points, said that BA's use of SAF within the new tier points system is "a complete greenwash" not a real driver of change.

"You simply give BA £1,000 and they give you 1000 tier points. End of. In reality it has nothing to do with SAF. There is a legal obligation to buy some [SAF] and the airlines are buying 100 per cent of what is produced, which is not much," he told The National.

Heathrow Terminal 3 Club Lounge. Some frequent flyers are angry at the changes to the Executive Club's tier system. Photo: British Airways

Meanwhile, the revamp of the system of benefits and rewards for members of British Airways' Executive Club has sparked anger from frequent flyers on social media aimed at the airline's updated tier status grades.

At the moment, to qualify for gold status, which affords benefits such as access to first class lounges and better baggage allowances, customers need to accrue 1,500 tier points a year. From next April, they'll need to earn 20,000 points a year. However, a British Airways source told the Press Association the new programme is not comparable with the existing one because of changes in how points are earned.

Essentially, the new system is based on how much you spend, rather than how far you travel or how many flights you take. BA said in addition to the cost of the qualifying part of an airfare, tier points will also be gathered for the first time for "ancillary spend, including seat selection and excess baggage" and that executive club members will "earn 1 Tier Point for every £1 of eligible spend".

The move from distance and the number of flights taken to basic cost as the baseline for amassing tier points is, in the opinion of Mr Burgess, clearly a "pivotal move by British Airways".

"It is effectively washing its hands of the leisure market and going all-in to attract the dwindling band of full fare business travellers," he wrote on LinkedIn.

A passenger in first class. Changes to the British Airways Executive Club's tier system prompted one frequent flyer to see it as the 'final nail in the coffin for my loyalty to BA.' Photo: British Airways

In addition, the full cost of holidays booked through British Airways Holidays will be eligible for tier points from April 1, with no limit.

"Based on our members’ feedback, we’ve built on the changes we’ve already made in a way that we believe better rewards their loyalty and reflects their changing travel needs," said Colm Lacy, British Airways’ chief commercial officer.

BA is also rebranding its Executive Club, which was launched in 1982, simply as the British Airways Club. The Avios system of air miles remains the same, while the changes apply to the tier levels: Blue, Bronze, Silver, Gold and Gold Guest. Blue is entry level, and has few benefits beyond being able to collect Avios points. Bronze is slightly better, with members being able to select seats a week before travel, access preferential check-in and take advantage of priority boarding. Silver means you can enter the Club lounges at airports, choose your seat at anytime after booking and be allowed extra bags.

Gold and Gold Guest membership is really only for those who turn left on entering an aircraft. They can select the window seats in the first row of first class and access the luxury airport lounges, such as the Concorde Room at Heathrow's Terminal 5.

Aircraft lands at London City Airport. To qualify for gold status with BA's Executive Club, an economy class passenger would have to spend £40,000 on flights a year, according to industry watchers Photo: British Airways

The changes, particularly the large jumps in tier point eligibility to move up the status ladder, have brought stark criticism from frequent flyers on social media. Self-described long-time business traveller with British Airways, Stephen Slessor commented on LinkedIn that the changes were the "final nail in the coffin for my loyalty to BA".

Meanwhile passenger Claire Jeffries noted that as fewer people see tier points as a reason to stick with BA, the airline will be really going "head-to-head on price" in the marketplace, which will "interesting to see the impact on the business".

Essentially, the changes mean leisure travellers are effectively shut out of gold and silver status. To qualify for gold status, an economy class passenger would have to spend £40,000 on flights a year, while silver status will require a spend of £7,500 (not counting air passenger duty and other fees). As such, to get 7,500 tier points you would be spending many thousands more, because much of the price of a ticket is not eligible for tier points.

Even big spending on holidays won't help much either. For example, although the full cost of a holiday booked through British Airways Holidays will gain tier points, they will be distributed evenly between the passengers. If a family of four (husband, wife and two kids) spends £20,000 on a BA holiday, each member of the family (regardless of whether they have a BA account or not) gets 5,000 tier points.

"BA has lost the plot essentially," Mr Burgess told The National. "For years, people who do not rate the airline have used them (regardless of price, schedule, quality) because it got them status. Now these people will be free agents and will find better value or product elsewhere. If the airline was outstanding I would agree that it was perhaps too generous, but in reality status-chasing was the only thing keeping many customers loyal."