British Airways has announced it is planning legal action against American Express as the latter is planning to terminate the commercial relationship as BA has refused to accept AMEX cards for some travel payments (well duh?)

BA refused to accept corporate net fare payments in the UK from people using American Express cards. BA wants to reduce thrid party fees in a cost-cutting drive.

AMEX and BA have strong ties. Nearly 75% of all British corporate companies use AMEX cards and they co-brand an AMEX-BA credit card.

Jim Tobin of Amex described the lawsuit, which was filed in New York, as "frivolous and without merit." He added: "BA is in breach of its agreement with us for not accepting the card on all fares in the UK."

Many corporate clients have reacted angrily to BA's move, claiming that it amounts to an indirect price increase for them.

More information at the Financial Times website