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.
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.
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.
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."
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
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Read part one: how cars came to the UAE
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Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
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PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
