ABTA’s Aviation Committee has warned American Airlines not
to copy British Airways’ agent payment structure after the airlines took the
first step in their bid to form a transatlantic alliance.
Late last week, BA and American filed applications proposing
a profit-share arrangement on nine transatlantic routes to the US and British
Governments and the European Commission, claiming the alliance was inextricably
linked to progress on ‘open skies’ competition between the two countries.
Committee chairman Sandy MacPherson said commission-paying
airlines which entered into alliances with airlines paying lower – or zero – commission
tended to reduce agent payments to the “lowest common denominator”. He warned
that ABTA would fight any move to reduce commission for UK agents.
MacPherson said: “Alliances are fine as long as our members
are not disadvantaged, but too often agents seem to be at the receiving end of
lowest common denominator remuneration.”
American Airlines UK and Ireland general sales manager
Matthew Hall said agent commission levels would not be discussed until
regulators have approved the tie-up.
“Until American Airlines receives anti-trust immunity with
British Airways, we cannot speculate on any kind of remuneration alignment with
BA,” he said. He claimed American was currently examining how the Fresh
Approach scheme had affected BA’s business in the UK.