BEFORE THE

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

British Airways

Multiple Price Advertising Violations of

49 U.S.C. § 41712 and 14 CFR 399.84(a)

Docket DOT-OST-2013-0025

COMMENTS IN SUPPORT OF DOT INVESTIGATION INTO BRITISH AIRWAYS 

PLC VIOLATIONS AND ADDITIONAL FACTS

Communications with respect to this document should be sent to:

Mike Borsetti

1 Montgomery St Ste 2500

San Francisco, CA 94104

mike@borsetti.com

21 March 2013
1

BEFORE THE

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

British Airways

Multiple Price Advertising Violations of

49 U.S.C. § 41712 and 14 CFR 399.84(a)

Docket DOT-OST-2013-0025

COMMENTS IN SUPPORT OF DOT INVESTIGATION INTO BRITISH AIRWAYS 

PLC VIOLATIONS AND ADDITIONAL FACTS

I strongly encourage the Secretary to exercise its authority under 49 U.S.C. § 41712 to 

investigate and impose sanctions on British Airways for the unfair and deceptive practices 

described in Mr. Edelman’s complaint, Document DOT-OST-2013-0025-0001, and in doing so 

fulfill its mission.

This is a matter of interest to the general traveling public, as evidenced by the relatively 

high number of comments entered in the proceeding by travelers who are generally unmoved by

most of DOT proceedings.

In addition, I would like to provide the following additional information to the Secretary 

in aiding its decision making.

BRITISH AIRWAYS FUEL SURCHARGES EXCEED THE TOTAL COST OF FUEL (LET ALONE TO 

COSTS ABOVE A BASELINE)
2

I utilized data available from British Airways and IATA to estimate British Airways fuel 

costs and came to the same conclusion of Mr. Edelman, that there is strong evidence that British 

Airways fuel surcharge is excessive, deceiving, and that therefore it is the Secretary’s duty to 

investigate.

British Airways states in its annual report1that in 2012 it flew 158,247 million available 

seat kilometres (ASK) (page 5) using “approximately 5.6 million tonnes of jet fuel” (page 11).

Using simple math, 35.388 g of jet fuel were consumed for each available seat kilometer. 

Utilizing the current highest average price paid at the refinery for aviation jet fuel compiled 

 

1

British Airways plc. (2013, March 13). British Airways Plc Report and Accounts year ended 31 December 2012. 

Retrieved 21 March 2013 from http://phx.corporateir.net/External.File?item=UGFyZW50SUQ9MTc1Njk3fENoaWxkSUQ9LTF8VHlwZT0z&t=1

$42,423 

$82,231 

 $-

 $10,000

 $20,000

 $30,000

 $40,000

 $50,000

 $60,000

 $70,000

 $80,000

 $90,000

Income from fuel surcharge Total cost of fuel

BOS-LHR single 777 flight (estimate) 
3

weekly by IATA2, USD 1009.5 per tonne, the average cost of fuel to British Airways is 

approximately $0.035724 per available seat kilometer.

Applying this to Mr. Edelman’s example of the BOS-LHR route, a 3265 mile great circle 

distance (5255 km) operated by a 226-seat aircraft, today’s cost of fuel to British would be 

approximately $42,423, far exceeding the $82,231 in income from fuel surcharges as correctly 

estimated by Mr. Edelman. 

One should note that the above cost exceeds the actual fuel costs as a network average 

cost was utilized, but this route is both longer than the average British Airways route (as the 

network includes domestic and European operations) and is operated by an aircraft that is larger 

than the average British Airways aircraft (which includes many narrow bodies) and therefore is 

cheaper to operate on an ASK basis than the average. In other words, the cost estimates provided 

are therefore too high.

The figure above graphically depicts the estimates.

I also see that Ms. Kathleen Voss in DOT-OST-2013- 0056 supports Mr. Edelman’s cost 

estimates as well.

BRITISH AIRWAYS FUEL SURCHARGES HAVE NO RELATIONSHIP TO FUEL CONSUMPTION (LET 

ALONE TO COSTS ABOVE A BASELINE)

British Airways describes fuel surcharges on its website3as follows:

 

2

International Air Transport Association (IATA) (2013, March 15), Fuel Price Analysis. Retrieved 21 March 2013 

from http://www.iata.org/publications/economics/fuel-monitor/Pages/price-analysis.aspx
4

However, British Airways fuel surcharges have no bearing whatsoever with any 

“reasonable estimate of the per-passenger fuel cost incurred by the carrier above some baseline” 

as required by DOT rules and guidance.

I searched on the US version of British Airways’ website for a flight in Economy class 

from New York City to London and the price offered included a fuel surcharge of $229 (see 

Exhibit 1). 

 

3

British Airways, Government taxes and fees and airline fuel surcharge. Retrieved 21 March 2013 from 

http://www.britishairways.com/travel/seccharge/public/en_us 

 $220

 $221

 $222

 $223

 $224

 $225

 $226

 $227

 $228

 $229

 $230

 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Fuel surcharge for the whole trip

Miles traveled

Fuel surcharge and distance - no 

relationship
5

I further searched for a journey starting with the exact same flight obtained above and 

connecting in London onwards to Doha, and the pricing for this journey, which is approximately 

94% longer, included a fuel surcharge of $221, or $8 less than the fuel surcharge charged by 

British Airways to travel to the intermediate city of London (see Exhibit 2). 

The figure above graphically depicts my findings.

RESOLUTION

In view of the preponderant evidence and public support, the Secretary should open an 

investigation on British Airways under 49 U.S.C. § 41712 without further delay.

The complaint provides evidence that British Airways was first made aware of the 

violations on 7 June 2012, and to this day is continuing to engage in the unfair and deceptive 

manners described. I strongly urge the Secretary to take into account each day from that date as a 

separate violation when imposing a civil penalty as per 49 USC § 46301.
6

Attachment 1: JFK-LHR price quote from BA.com, 20 March 2013 approx. 17:00 PT
7

Exhibit 2: JFK-DOH price quote from BA.com, 20 March 2013 approx. 17:00 PT