BA passengers attempting to claim compensation for their bank holiday travel disruption face further chaos as the airline battles with insurance companies over who is liable to pick up the bill. In the aftermath of the computer systems outage, which affected 75,000 passengers worldwide, the airline promised to compensate customers who had incurred “disruption expenses” including the cost of hotels, meals and phone calls. This is on top of the EU compensation worth up to E600 per passenger for delayed or cancelled flights. However, BA customers attempting to claim for non-flight related expenses online are being told to claim on their travel insurance in the first instance. This has prompted fury from consumer campaigners, who say this could leave them out of pocket if they have an excess on their policy. Before they can enter any details of their claim, BA’s online compensation form asks customers if they had travel insurance for the disrupted journey. If the passenger answers Yes, BA then asks if they have claimed, or intend to make a claim, on their travel insurance. If the passenger answers No, the BA website prompts: “You should make a claim with your travel insurer in the first instance. If you have expenses that either you were not successful in claiming or which are not covered by your policy, you may claim for only these expenses in the form below.” BA’s website does not make it clear if the airline will refund the cost of any excess on passengers’ travel insurance policies.<br/>
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BA owner IAG defended BA boss Alex Cruz’s handling of a massive flights outage over the weekend that’s estimated to cost the carrier as much as E100m. “It has been very unfair of people to try and blame Alex,” IAG CEO Willie Walsh said at a press conference in Barcelona to celebrate the first flight by the group’s new budget brand, Level. “It was not a problem of his making.” After a computer failure grounded hundreds of flights and stranded at least 75,000 passengers, Cruz came under fire for cost cuts and outsourcing he’s led since taking over British Airways a year ago. The carrier blamed the outage on a power surge at its data hub near London’s Heathrow Airport, and says it was caused by hardware and not by the center’s outsourced software functions. “We understand what caused the problem and we’re still investigating exactly why some of these issues happened,” Walsh said. “Cruz has done a great job.” The data center’s hardware and maintenance are provided by an outside vendor, which may allow BA to reclaim some of the damages, Goodbody Stockbrokers analyst Mark Simpson wrote in a note. Goodbody estimates the weekend’s fiasco could cost BA E82m, including E36m of lost revenue and E46m of possible compensation costs. Citigroup pegged the bill at E100m.<br/>
More than 6,000 BA pensioners could die before a legal dispute between the airline and its retirement plan’s trustees is finally settled, according to court documents. The warning was made by trustees of the Airways Pension Scheme, which has been locked in a four-year battle with BA over the awarding of a 0.2% discretionary increase to thousands of retired airline workers. The High Court ruled last month that the trustees’ decision to award the extra payment to boost pensioner incomes, which was to have been paid in December 2013, was valid. But the High Court last week granted BA leave to appeal against the decision. In the court filing opposing BA’s appeal claim, the trustees said 3,833 members had already died between December 2013, when BA initiated legal action, and May 19 this year. This included 2,318 pensioners and 1,515 dependants of deceased members receiving pension benefits. The trustees estimate a further 2,330 deaths could occur if an appeal by BA was to stretch a further two years. The High Court allowed BA to appeal on two technical points. The trustees now estimate the Court of Appeal will take 18 months, and not two years, to hand down its decision.<br/>
IAG will increase the fleet size of its new long haul low-cost airline Level to five in 2018, its CE said Thursday at the launch of the new brand which will fly to the US. Barcelona-based Level will initially operate with two new Airbus A330 aircraft to serve the Americas. "In 2018, Level will increase its fleet to five aircraft and we are considering other European bases for the operation," IAG chief executive Willie Walsh said, adding sales had been well ahead of expectations. Walsh had said last month said that Level would add two or three planes next year.<br/>