UNITEDAirlines and Sabena have become the latest carriers to announce commission cuts.
United is to pay agents just 7% commission instead of 9% on all tickets issued from August 1, while from July 1 Sabena will only pay its top-performing agents 9% with the rest getting 7%.
Last month, American said it would slash rates to 7%, starting at the beginning of August (Travel Weekly May 17).
United UK general manager Brandon O’Reilly said: “We have taken this action to maintain our competitive position.” He refused to comment further.
United has a policy of not commenting on commissions since USagents successfully received compensation four years ago after allegations that airlines had colluded on prices.
Sabena general manager for UK and Ireland Marc Nelis said: “The distribution system for airlines is changing rapidly and it is necessary for carriers to adapt to the new trends and conditions. Factors such as the growing use of the Internet and a greater willingness on the part of agents to consider a fee basis for their services are just two of those trends and if you look back over the past year you will see that we are just following the market.”
The industry expected United would come into line with its Star Alliance partners Lufthansa and SAS. They cut rates to 7% from 9% on April 1 and introduced special agreements with their best agents.
Other Star Alliance airlines, including Air Canada, Thai Airways, Varig, Air New Zealand and Ansett Australia, will now come under pressure to cut commission to 7%. Lufthansa chairman and chief executive Jurgen Weber has already said they will reduce payments.
ABTA Aviation Committee chairman Sandy MacPherson said no-one was surprised by the latest announcements.
He said: “It is a considerable disappointment they have chosen to go down this route. I think it’s an opportunity lost for them because they would have stood out from the crowd if they hadn’t cut commission and that would have drawn a great deal of support from agents.”