RYANAIR has threatened to take action against agents who introduce service fees when it slashes commission to 5% from April 1.
The carrier also threatened that commission could be axed if agents break agreements.
The announcement was greeted with dismay at ABTA which said the decision was totally at odds with pro-agent assurances the low-cost airline had given it a month ago.
Chairman of ABTA’s aviation committee Sandy MacPherson said: “This is a surprise to me and different to what Ryanair has said to us. It is arrogant and indefensible to say that agents cannot charge service fees.”
Ryanair, Europe’s largest budget airline with 5.7m passengers last year, claimed the commission cut from 7.5% was a result of increased bookings on ryanair.com.
Sales and marketing director Tim Jeans said: “If we lose control of our pricing then efforts to control distribution and trust with agents will be lost. We could then cease agent distribution altogether.”
He has warned that Ryanair will take action against agents who introduce service fees to make up for reduced commission.
John Walsh, a director of agency Walsh International in the City of London, said: “I think 5%, or 7%, is dire. We make a loss on all Ryanair business and only do it as a service to our regular customers.”
Walsh said he would wait for the result of a court case on fees before introducing his own extra charges on Ryanair sales.
The airline won a court case in Ireland over service fees but ABTA’s head of legal affairs Riccardo Nardi said this would have no bearing on UK action.
However, Nardi warned: “There is no doubt Ryanair will go after an agent who charges service fees. This is an extremely disappointing attitude to agents.”
Nardi said Ryanair’s overall attitude to agents was poor.
As well as commission and service fees, he highlighted problems over the carrier’s reservation system which does not give agents confirmed bookings.
Ryanair is the only low-cost airline which has banned service fees. EasyJet, Go and Buzz encourage them but do not pay commission. Jeans claimed Ryanair wants to continue working with agents but said rates were cut because the airline’s commission bill this year is forecast to be £7m.
Bookings on its ryanair.com Web site accounted for 20% of all sales last month.
n See Comment page 8
“I can’t stand low-cost flights, they’re killing the game. They’re trying to kill the independent agent and squeeze every last penny out of us.”
Tom Welch, managing director, Independent Travel Club, Manchester
“I think Ryanair’s cut is a kiss of death on them. We are used to all sorts of headaches but when you can’t feed yourself, that’s just getting ridiculous.”
Bob Robertson, managing director, Lawrie’s Travel Agency, Edinburgh
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