Tobacco Documents Online

BA Update

Abstract

The following telex, yet another from Matthew Winokur of Philip Morris Worldwide Regulatory Affairs, further describes Philip Morris' (PM) efforts to harass British Airways (BA) over its 1993 decision to make all of its European flights of 90 minutes or less smoke-free.

In this telex, Winokur considers the feasibility of a boycott against BA. Winokur inquires how much money PM spends flying its employees BA each year to "assess whether its enough to make BA wince at the though of losing us." Another only glitch was that well before BA announced its smoke-free flights, PM signed an agreement with United Airlines to discount flights for their PM employess based on volume. PM subsequently told their employees to travel United Airlines whenever possible. Realizing that if BA knew about this, it would be pointless to threaten a boycott, Winokur still tries to find a way to make it work. He asks that PM make the reasons for switching arilines appear "ambiguous" in the hopes they could claim it was because of the change to smoke-free flights:

"Also, PM just signed contract with United Airlines for discounting based on volume and requires all company travel on UA where possible. This will reduce impact of our BA spend. I've asked from henceforth that our reasons for switch be made ambiguous in the hopes we can suggest to BA that its smoking policy was reason. But the fact is the contract pre-dates BA's announcement by a few weeks."

PM also was having difficulty rounding up support from other British and European tobacco companies for its boycott of British Airways:

"Spoke with Jacqueline Smithson [Corporate Affairs head for Rothman's International]...often BA is carrier of choice or only reasonable carrier. That, plus personal interest in opting for BA by employees because of mileage program means she was not totally optimistic about company boycott.

The Rothman's corporate affairs representative also made a the statement that reflects how common smoking restrictions were becoming, and how the industry was feeling their power restricted as a result:

"She noted that a boycott approach also may not sit well as previous similar efforts have left mgmt with view that pretty soon 'we'll have boycotted ourselves out of using any vendors if they adopt negative policies toward smoking...' "

Winokur also noted that cooperation for Gallahers (tobacco company) was "hopeless."

Fields

Quotes

To: David Bushong 08/11/93 From: Matthew Winokur Subject: BA Update

*Corporate travel reports ALL U.S. based PM spending on BA for full year '92 was $567,ooo and first 6 mos. '93 $276,000. This is a good bit of money though hardly their largest account. Also, PM just signed contract with United Airlines for discounting based on volume and requires all company travel on UA where possible. this will reduce impact of our BA spend. I've asked from henceforth that our reasons for switch be made ambiguous in the hopes that we can suggest to BA that its smoking policy was reason. But the fact is the contract pre-deates BA's announcement by a few weeks.

*You'll have seen my note to EC/EEMA finance for same data from the regions.

*I've asked you to consider best means for getting BA spend data from KGFE/JS.

*Spoke with Jacqueiline Smithson (CA head for Rothman's Int'l) regarding RT's support for a UK industry approach toward BA. She was relatively supportive, to wit:

She will analyze RTI's BA spending. Her guess is its sizeable. That's good and bad news: god as it means clout, bad because it reflects fact tha toften BA is carrier of choice or only reasonable carrier. That, plus person interest in opting for BA by employees because of mileage program, means she was not totally optimistic about company boycott. She suspects strong letter of dis[p]leasure may be best we get or threat to use alternatives. She noted that a boycott approach also may not sit well as previous similar efforts have left mgmt with view that pretty soon "we'll have boycotted ourselves out of using any vendors if the adopt negative policies toward smoking..."

--She will try to get Imperial on side as well

--We agreed Gallahers is probably ghopeless.

--She did agree we could run grass roots letter campaign and will suggest same to Imperial, TAC and her management.

--I'll contact BAT and TAC tomorrow. I wanted to get some initiative going at the company level before calling Swan.

*Also think we should consider countervailing grassroots campaging in BA destination countries within the 90 minute radius to both protest to advise BA they'll switch to competitor carriers with copies to the latter, perhaps. I'll sense if you agree with the concept.

* As for grassroots elsewhere, we can undertake. Querry whether we should focus on the three markets reported i the BA release or broaden. Again, my fear is going beyond a "logical" reason to know is that if BA management starts to get letters from outside sphere of impact of the current proposal, they may sense our hand and this may undermine the effectiveness of the whole initiative. Comment?

Talk to you tomorrow.

Matt

Company

Philip Morris Europe

Author

Winokur, M.

Recipient

Bushong, David W. (PM European Affairs VP)

1993

Santana, D.

Region

United Kingdom

Litigation

Stmn/Produced

Type

Telex

Subject

Airline Smoking Ban

smoking bans

workplace smoking restrictions