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BA talks to fuel companies to cut fuel costs

30.06.09

British Airways is in talks with two of its largest fuel suppliers, Shell and BP, to try to reduce its fuel costs. BA said in its weekly internal newsletter BA News that it is seeking to exert ‘more control over the price it pays to fuel suppliers’.

Tim Richardson, head of procurement at BA, said: ‘As part of our top 250 supplier review, we are talking to all of our fuel suppliers, including the largest two - BP and Shell - about how we can reduce this cost.’ He said some significant savings had already been made, with more to come.

BA intends to start scrutinising what it pays its top 500 suppliers in order to lower its costs further, having focused since April on its top 250, which account for 92% of its total expenditure.

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