Industry bodies warn Finnair on surcharges

‘Effect will be to shift costs onto corporates'

Two leading industry bodies today (December 10) warned off Finnair about introducing surcharges on payments made through credit cards.

The national carrier for Finland already charges €7.50 for bookings made in the Netherlands through the airline's merchant agreement.

But Petri Schaaf, its vp global sales, has indicated it is considering expanding this to include payments for reservations made by travel agents with credit cards.    

But the Business Travel Coalition (BTC) and the UK and Ireland Institute of Travel and Meetings (ITM) has warned that such a move will effectively pass on cost to the customer.

 In an open letter to Mr Schaaf, Kevin Mitchell, chairman of the BTC, and Paul Tilstone, chief executive of the ITM, said the merchant agreement was "an equitable, time-tested and efficient process for airlines and their customers".

Their letter added: "These credit card costs are already baked into the price of tickets purchased by corporate buyers of your airline's services.

"As such, surcharging will be asking your very best customers to pay for this cost twice. This, of course, is unacceptable." 

In response to Mr Schaaf's reported statement that "In general, as long as there is a legal and technical possibility, we will consider it (expanding the surcharge), the BTC/ITM letter reminded him that his best customers were the corporates.

"Have you forgotten about your commercial relationships; the interests and concerns of your very best customers?

"Individual travelers are indeed customers, however, corporate travel departments are your business partners.

"There should be a level of respect for and collaboration with corporate customers and the travel management companies that service them that is clearly missing from your statement," the letter states.

The letter concludes that it recognises Finnair's need to compete in its own markets.

But it adds: "If airlines, including yours, expect to generate corporate managed-travel community support for unbundling and merchandising, there must be sincere collaboration and respect shown for the interests of business partners and distribution system stakeholders.

"We hope you carefully consider any policies that inappropriately shift costs to your customers."

Mr Schaaf was unavailable for comment.

www.finnair.com   www.businesstravelcoalition.com   www.itm.org.uk