British Airways Ends Contract With Passenger Dispute Service

British Airways will not renew its contract with an independent adjudication service that resolves claims from delayed or disrupted passengers, Paddley Too and PYOK reported. The alternative dispute resolution provider independently reviews compensation claims that the airline has previously rejected. The service has the authority to issue binding decisions forcing the carrier to pay passengers even when British Airways believes compensation is not due. [1][6]

Paddley Too reported that the UK has permitted the use of alternative dispute resolution service providers since 2016. According to Paddley Too and PYOK, the adjudication service required British Airways to pay £5 million in passenger compensation over a single year. Arbitration involves a neutral third party that issues a legally binding decision enforceable in local courts. [1][6][7]

British Airways is the flag carrier airline of the United Kingdom and maintains headquarters adjacent to its main hub at Heathrow Airport. The carrier operates as a subsidiary of International Airlines Group following a 2011 merger with Iberia, running flights from hubs at Heathrow and Gatwick. [8][10]

Separately, LoyaltyLobby reported that British Airways signed a codeshare agreement with Mexican carrier Viva that takes effect on March 28, 2027. Under the agreement, British Airways will place its code on Viva flights operating out of Mexico City and Cancun. [4]