| Journal: TWUK | Section: |
| Title: | Issue Date: 13/11/00 |
| Author: | Page Number: 3 |
| Copyright: Other |
GB Airways opts to ditch commission payments
FRANCHISE airline GB Airways is to follow British Airways’ lead and scrap commission in favour of sector fees.
The move from 9% to 0% commission will take effect from April 1 when BA goes live with its sector-related payment scheme.
GB Airways commercial director Peter Kenworthy said: “We’ll adopt the BA commission cuts from April 1 2001. Our policy is to match BA on all European services.”
BA franchise carriers and subsidiaries have come under pressure from agents to clarify their commission plans (Travel Weekly September 25).
Kenworthy added: “If we are offering a £79 fare plus tax, an agent will earn £6 for a Euro Traveller fare. As the fares come down, agents will get a better deal on international fares. On the old commission-based scheme, the amount of money an agent earned depended on the destination. This system must be easier for the agent to target his income.”
Agents will be able to earn £6 per sector for discounted Euro Traveller fares and £11 per sector for full-fare Euro Traveller and Club Europe fares.