BA learns value of the internet from low cost airlines

British Airways says it will follow the example of budget airlines such as Ryanair and EasyJet by offering passengers more online options when booking flights in an effort to boost revue through ancillary sales.

BA chief executive Willie Walsh has described web distribution as the best thing that has happened to the airline business.

Half of all BA's UK bookings and 30% worldwide come via the airline’s website and, according to Walsh, 80% of customers service their flight bookings online.

He went on to explain that BA had learned from the low cost airlines that the internet gives significant additional value through ancillary revenue.

For example, a significant proportion of leisure passengers at Gatwick are paying to upgrade cabins when they check in online.

Walsh went on to say that, for the time being, BA will not charge for check in, baggage or assigned seating as some airlines offering cheap flights do, as this is not a model that would work for BA - although it may at some stage.

The BA boss warned last week that airlines faced the worst trading environment ever seen and told the World Low Cost Airlines conference in London that costs would have to be driven down further.