KLM UK considers ditching agent commission in 2002

Airline reveals it is considering three options for a new payment scheme

KLM UK considers ditching agent commission in 2002

DUTCH-owned airline KLM UK is considering following in British Airways’ footsteps by axing commission in the first quarter of next year, reports Juliet Dennis from China.

The carrier has revealed it is examining three options for a new payment scheme for agents, including one similar to BA’s sector-fee system which came into force yesterday.

The other two possibilities are introducing a fee per airline ticket – a scheme the airline plans to introduce in the Netherlands next January – or reducing its current commission level of 10%.

KLM UK, a wholly owned subsidiary of KLM Royal Dutch Airlines, sent out letters last week to the UK’s 7,000 travel agencies to warn them of the potential changes. The move follows talks with ABTA, the Guild of Business Travel Agents and the Scottish Passenger Agents Association.

KLM UK sales director Tony Le Masurier said: “We want to involve the trade by consulting on the changes we’re going to make. We are looking at the commercial implications of each option and we’re not in a hurry to make a decision.”

He hopes the airline will take trade from BA following its recent move to axe commission. “We’re expecting in the short to medium term to be a beneficiary of the change,” said Le Masurier.

Virgin was due to announce its new payment scheme for agents as Travel Weekly went to press. Full details next week.

Forewarned: KLMUK has already informed agents of the potential changes