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Bits: you may get £400 from Mastercard, BA’s refusal to check through bags begins to bite

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News in brief:

Mastercard may owe you £400

The Daily Telegraph reported yesterday that a class action lawsuit is being prepared against Mastercard in the UK.  This will be one of the first cases to be brought following changes to the law via the Consumer Rights Act 2015 which made them possible.

The case comes after the EU found that Mastercard had broken the law by charging ‘excessive’ interchange fees to retailers between 1992 and 2008.

The crux of the case is this:

“Mr Merricks argues that because MasterCard’s fees have already been found to be illegal by the European Commission, this ‘follow-on’ claim need only prove the damage consumers suffered as a result of Mastercard’s anti-competitive behaviour.”

As retailers were forced to pay Mastercard more than necessary for accepting their cards, you may think that it should not be difficult to prove that consumers suffered ‘damage’.  The total overcharging is believed to total £19 billion which would result in a £400 payment to anyone who had a Mastercard during that period.

There is no need to ‘opt in’ to the case.  The case will proceed and, if Mastercard loses, you will be able to apply for a share of whatever money Mastercard is forced to make available.  Based on what I have seen from similar US cases, I would imagine this to be a flat sum and not based on your actual Mastercard spending between 1992 and 2008.

You can read more on The Daily Telegraph site here.  

British Airways Globe-Trotter BOAC suitcase

The new oneworld policy on through-checked bags bites

Last month I wrote about a new policy adopted by the oneworld alliance airlines, including British Airways.

Historically, it was alliance policy to check through bags to separate flights on separate tickets when both airlines were members of the alliance.   From 1st June, this is no longer the case.

BA has taken it a step further.  It will no longer check through bags TO ANOTHER BA FLIGHT if it is on a separate ticket.  This policy hits Avios redemptions hard because many regional customers will buy a cash domestic flight to connect to a long haul redemption.

This story was on Flyertalk yesterday and shows how it works in practice:

I had my first terrible experience under this new system with exactly this trip today.  When I checked in at First desk in LHR I was firmly told they wouldn’t route the bags through. Connection time was 3.05hrs (2.05hrs before Madrid checkin closed) which I thought wouldn’t be too much of a problem.

However, we landed 45min late due to French ATC strikes, and I had naively thought Terminal 4S was a separate terminal rather than just an outstation of Terminal 4. To collect and recheck my bag I therefore had to run all the way through 4S, clear immigration, wait for the little train and then run to the baggage carousel in Terminal 4. I got there with 15 minutes to go before check in closed (yes it took a full hour from plane landing to do this!)

Unfortunately though, Madrid baggage handlers are even slower than I am, and the bag didn’t appear until T – 3 minutes!  Queue a mad sprint up to departures and I arrived at the desk at T + 1 minute. 

AA agents initially refused to check in my bag, until I literally got down on my knees and begged. I think had it not been for flying J, as OW Emerald, and having clearly been running for far longer than my doctor would recommend, they wouldn’t have let me on.

Obviously I then had to rush all the way back again to 4S and got on the flight with 10 minutes to spare. However rather than departing relaxed, having spent the past hour in the lounge, I arrived hot, tired and stressed – having almost not made the flight at all. All because of this ridiculous new policy.

Not good at all ….


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Comments (72)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • BillyBoy says:

    While the abandonment of interline agreements with other carriers (OW or not) clearly could have chunky commercial benefits, I’m really struggling to see any financial upside in attacking BA-BA itineraries as well.

    I would really love to read the Assumptions section of the business case for this – I suspect there are some heroic ones in there…!

    • Andrew says:

      First BA flight is delayed meaning that passenger no longer has time to collect their bags and check them in for the second so they miss that flight. They now have to pay BA for another flight and BA also potentially cancel their return flight meaning that that can be resold.

      Large financial upsides to BA at the expense of a terrible customer experience.

  • James6u says:

    The new interline rules do not affect me as I generally carry cabin bags only. Neverthepess, this makes me mad and I hope the losses to BA from loss of passenger custom and goodwill exceeds their estimation. At the very least, one years notice of this change should have been given if BA had any respect for their customers at all.

    • zsalya says:

      It will affect you if the first flight is too late for you to make the second one – BA will not reroute you so you will have to pay top price for an instant ticket on the next flight (and if the flight you have missed is a return, you will probably have lost that too by being a no-show)

      • harry says:

        Indeed – Raffles you might care to look into insurance providers? Would Amex Plat cover disruption? Which other insurance providers would give peace of mind to the worried 2x PNR traveller?

        I look forward to the article 🙂

  • Wanderwide says:

    All this is really appalling. My job always requires me to travel with a good deal of checked baggage. If I can no longer check it through, I won’t be able to risk making connecting flights on the same day, and shall have to waste time and money on a hotel overnight. Are any other alliances developing a different model, with a selling point of making transfers between its members’ flights – and, of course, between the flights of each individual airline – as seamless as possible? Is there any hope of political pressure being applied, with the threat of legislation to oblige airlines to check baggage through? Short of cutting up my BA Gold card, what would be the most effective way for a frequent flyer in my position to make BA aware of my disgust?

    • John says:

      If your job requires you to travel with checked baggage, then your employer should book you on a connecting ticket where baggage is checked through, otherwise your employer will be wasting time and money paying for your hotel.

  • Cheshire Pete says:

    I’ve already implemented a policy , when flying from Manchester , that if I need to Interline as I’m unable to book a thru ticket , then I won’t be using BA anymore. Manchester does have many carriers offering more direct connections than I can count, so my love for BA is well and truely over.

  • Clive J says:

    Logically it won’t just be Mastercard holders entitled to compensation. Retailers would have built these costs into their general pricing, so even those paying cash will have lost out. If it is restricted only to cases where retailers added a premium for Mastercard payments (and I cannot remember this being widespread) it will be a more difficult case to prove and almost impossible to quantify each loss.

    • harry says:

      The difference is: MC lost their case in law whereas there was no case upheld against Visa.

    • Andrew (@andrewseftel) says:

      Or, at least, Visa cardholders should also be eligible. There are plenty of merchants who charged more when paying by card (whether a corner shop or an airline) but I can’t ever recall variable pricing between Visa and MasterCard.
      The reason for this most likely is that the acquiring banks were charging the same fee whether it was Visa or MasterCard. Perhaps the banks should be suing MasterCard instead since one could argue that it was hitting their profits!

      • harry says:

        No – you’re missing the point that MC broke EU law whereas Visa didn’t

    • Tina Hammond says:

      Wrong thread ! This is ow not checking baggage if sepatate bkg regs

      • AndyGWP says:

        haha – no, it’s definitely about Mastercard Class Action Lawsuit AND bags not being throughchecked with BA

  • Hmmm says:

    But the ex MAD flight was not on BA, was it?

  • Tracy says:

    I have a flight in August on Alaska Airlines from Anchorage to Seattle. I’m then flying On BA to Heathrow. Before I booked I asked Alaska whether they would honour BAs baggage allowance and check the bags through and they confirmed that if I showed my BA itinerary they would. Does this mean they won’t do this now? Thanks.

    • John says:

      Alaska is not a member of oneworld. They may still do it but you shouldn’t have relied on it even before this policy change.

  • harry says:

    When BA took over the BMI LHR slots, they made a binding commitment to improve interlining.

    Anybody care to look it up?

    • The_Real_A says:

      Interlining does not equate to separate tickets however. Its the ability to buy a single ticket from A to C (passing through B)

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