| Journal: TWUK | Section: |
| Title: | Issue Date: 05/06/00 |
| Author: | Page Number: 5 |
| Copyright: Other |
French carrier set to axe UKcommission
UK AGENTS look set to lose commission payments from Air France next year.The French carrier’s chairman Jean-Cyril Spinetta said Air France is bound to follow UKmarket leader British Airways by axing commissions in favour of service fees.
“Air France goes along with what other major companies are doing in their home market,” said Spinetta.
He said the move to cut the commission of French agents from 9% to 7% last year, added to the same cut for UK agents on April 1, was saving the state-run airline thousands of pounds. Air France currently pays out £8.5m commission per annum to UKagents.
BA intends to drop commission payments on January 1 next year and will then allow agents to charge customers service fees. The UK airline will pay a nominal fee for each sector booked.
Spinetta also said Air France will step up its Internet activity in a bid to increase on-line bookings.
These will be mainly direct and increase the pressure on agents.
Meanwhile, the French carrier said cost efficiencies in the year to March 31 contributed to a 42% increase in net income to £215m.