SINGAPORE Airlines has become the first major airline to announce plans to scrap commission payments on full-fare tickets and pay rebates directly to corporate clients in its home market.
While other airlines have introduced commission capping in the US and SAShas cut commission to 4% in its home market, SIAis believed to be first to totally scrap fee payments.
Currently, SIAallows Singapore agents to arrange their own rebates for corporate clients, but the airline said this led to clients not knowing if they have the lowest fare. Agents are expected to introduce service fees to replace the payments when the commissions are scrapped in October 2001.
SIA general manager UK and Ireland Vijendran Alfreds said it had no plans to drop commission outside its home market, but UKagents are sceptical.
Guild of Business Travel Agents chairman Don Lunn said: “This is not in the interests of the industry. It is short term and there is no long term thought given to what will happen.”