BMI has
followed flag carrier British Airways by cutting commission to 1%.

The
airline will make the change from January 1, as predicted in Travel Weekly
(September 1).

A BMI
spokeswoman said: “This decision follows a period of consultation and
distribution strategy considerations with key industry partners.”

The move
is part of the carrier’s Blue Sky cost-cutting project.

American
Airlines has also dropped to 1%, the latest Oneworld carrier to do so.

The
airline said it will make the change from December 10, but denied it was
influenced by Oneworld partner BA. An official statement said: “The change to
commission levels reflects the fact that American Airlines operates in a highly
competitive market where it is not financially viable to sustain costs that
exceed those of its competitors.”

Both
airlines said they wanted to maintain their relationship with the trade,
despite the cuts.

American
follows alliance partners BA, Iberia and Aer Lingus in cutting commission
rates.

Advantage director of business travel Norman Gage warned
airlines they could be accused of collusion.