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Rival carriers will not follow airline’s lead on payments


Rival airlines have claimed they do not have any immediate plans to follow British Airways lead and scrap commissions.



Many who followed BA with a commission cut to 7% from 9%, said they will be watching the market before making any decisions.



American Airlines, a partner of BA in Oneworld, said it would not follow BA’s lead yet.



Managing director European sales Jon Snook said: “American does not follow BA blindly and not everything BA does is a smart decision for us. Last time we did not follow for more than a year.”



Last August, American cut commission to 7% from 9%, to bring it in line with BA’s cut in January 1998.



“I am sure this is not the right time for American to cut commission,” added Snook.



Another BA partner, Qantas, echoed American’s thoughts.



General manager UK, Ireland and Middle East Sally Martin said: “We have our commission deals and have no plans to change them. But we will watch what happens.”



She said there was no pressure from 25%-stakeholder BA to cut Qantas’ 7% rate. “We make our own arrangements on commissions,” she said.



Lufthansa UK and Ireland general manager Eric Burgoyne said: “Of course we’ll keep an eye on the market leaders but we are not planning an immediate reaction to BA’s move. Our relationships, financial or otherwise, are taken seriously.”



The German carrier, with Star Alliance airlines SAS and United Airlines, cut commission to 7% to match BA last year.



Virgin Atlantic general manager global distribution Charlie McKee said: “Where commission cuts have happened, the consumer has paid more. We will not take any radical steps.”



British Midland and Air France have no plans to change their commission payments.



Meanwhile, Airtours sales, marketing and development director Ed Sims said operators would maintain commission payments to agents.


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