| Journal: TWUK | Section: |
| Title: | Issue Date: 30/04/01 |
| Author: | Page Number: 8 |
| Copyright: Other |
Carrier shows support for service fees
BMI british midland has defended British Airways’ move towards charging service fees, but denies the concept has been instigated by the airline industry.
Chief operating officer James Hogan declined to reveal bmi british midland’s payment plans for agents following the introduction of BA’s Fresh Approach to 0% commission, but said it would continue to work with the trade to “determine the way forward”. He conceded, however, that the time has come for agents to start charging for their services.
He said: “If there was ever a time, it’s now. We must see what the market leader does and we must listen. There’s no point changing for the sake of changing.
“We were moving towards management fees in the hotel sector seven years ago, and corporates prefer the new open-book method. The rules of business are changing, it’s not the airlines in isolation,” Hogan added.