british airways shareholder discount

[CanWeGoYet?]

Sorry if this question gets asked frequently, I've tried doing some searches & could not find any info.

I've read about the 10% discount airfare on british airways for owning 200 shares. I know there are restrictions, only able to book online & must own shares some time early november for the following year - (is the 5th? anyway I'm looking at a trip in 2011 so I could still make that date). After reading the info I could find on their website I'm unclear on a couple things.

Website specifies only good on "ex UK flights." I don't know what this means - does it mean trips that originate from the UK? It still might work for me if I end up taking a transatlantic cruise to England, & buy a roundtrip ticket just to get back to the states.

And lastly, does anyone know if the discount is only available to British citizens?

[Globaliser]

I've read about the 10% discount airfare on british airways for owning 200 shares. I know there are restrictions, only able to book online & must own shares some time early november for the following year - (is the 5th? anyway I'm looking at a trip in 2011 so I could still make that date). After reading the info I could find on their website I'm unclear on a couple things.

 

Website specifies only good on "ex UK flights." I don't know what this means - does it mean trips that originate from the UK? It still might work for me if I end up taking a transatlantic cruise to England, & buy a roundtrip ticket just to get back to the states.

 

And lastly, does anyone know if the discount is only available to British citizens?

I believe that it's available to any individual shareholder on the main UK share register. But I think that means that it's not enough to hold ADRs in the US. You would have to buy the shares in the UK. I don't know (and you'll have to find out) whether this is possible if you give a US address, or whether you need to give a UK or European address. You will need to comply with the stockbroker's KYC and anti-money laundering procedures, many of which are mandated by UK legislation. In addition, I don't know (and you'll have to find out) whether it's an offence for you to buy shares in the UK if you are a US resident.

 

The discount is only valid on flights for leisure purposes. However, I think that the "ex-UK" restriction has now been lifted. The discount is only off the base fare (ie it does not discount the fuel surcharge). So on a typical economy round-trip flight from the UK to the US, the discount will be in the order of £20 per ticket. But on sale fares, the discount is much lower. For example, on the current £300 sale fare from London to New York, the discount amounts to about £9.

 

The record date is slightly different every year, but early November is when it is. You must appear on the share register on that date. It's not enough simply to have bought the shares by then. The rules change from year to year as well. Starting with 2010 (ie those who were on the register in early November 2009), you only qualify for the discount if you opt to receive all shareholder communications electronically. And often you can only use the discount code for purchases made on or after 1 January of the discount year (ie 1 January 2011 if you buy the shares this year), although sometimes there have been special arrangements or promotions which mean that the purchase window opens earlier.

 

More details here and here.

[CanWeGoYet?]

Thanks Globaliser, that's helpful info. I was hoping the discount would be more, I thought 10% off any base fare. Sounds like a lot of hoops to jump through for 9 pounds off of 300.

[Globaliser]

I was hoping the discount would be more, I thought 10% off any base fare.

It is 10% off any base fare. But the base fare is not as big as you might think, particularly on cheap fares. The base fare on that £300 sale fare to New York is £86, giving you a discount of £9.

 

The 10% discount is really worthwhile if you buy lots of tickets in cabins other than the economy cabin. So, for example, if you fly to Johannesburg in World Traveller Plus (one of my typical routes), a normal "cheapest" base fare is something like £1,050, so you'd get a discount of £105 per ticket. Do that for a couple of people three times a year, and the amount saved can really mount up.