Ladbrokes has told its 14,000 staff not to fly with British Airways after the chief executive’s 14-year-old daughter was refused a seat on one of its flights.

The airline told betting company boss Chris Bell that his daughter and her friend could not fly with him, as the flight from Barbados to the UK last month was full.

After refusing £250 to miss the flight, BA allowed the pair on.

But the incident has potentially cost the airline millions of pounds in lost business as Ladbrokes has now banned all business travel on BA unless there is no alternative.

A spokesperson from Ladbrokes said: “Recently Ladbrokes executives have had a number of problems travelling with BA both personally and on business.

“We have prioritised use of other airlines for business travel until these matters are resolved.”

British Airways said the airline has apologised to Mr Bell and said he is a “valued customer”.

A spokesperson said: “There was a seating allocation issue in Barbados as the two teenagers had been booked on a completely different ticket to Mr Bell.

“As soon as staff realised that Mr Bell was travelling with the two girls, despite them being on different bookings, the issue was resolved and the whole group travelled back as planned.”

BA added that it has been in contact with Mr Bell and has offered him £500 compensation over the incident.

“Again we would like to apologise to Mr Bell and we will continue to keep in contact with him,” the airline said.

Other recent boycotts of BA have included one from Christian associations over a decision in 2006 to stop an employee from wearing a visible cross necklace, and from supermodel Naomi Campbell after being arrested for allegedly spitting at a policeman.

Ms Campbell was already apparently banned for life from the airline, however.