AMERICAN Airlines is to become the first US carrier to slash commission for UK agents from 9% to 7% from August 1.
The news comes in the same week as seat-only operator Avro unveiled plans to cut commission from an average of 13% to 11% (see story page 3).
Retailers have been expecting the move from American since its transatlantic partner British Airways reduced rates to 7% last year.
ABTA aviation committee chairman Joe Bourke said: “It was always likely distribution policy would be harmonised among airlines that affiliate with BA. This is despite us being told this would not be the case.”
Bourke said it was only a matter of time before other Oneworld airlines, including Cathay Pacific, Qantas, Canadian Airlines, Iberia and Finnair, implement a 7% rate. The rival Star Alliance has already said members will cut rates, as exclusively revealed in Travel Weekly last week.
Guild of Business Travel Agents chairman Don Lunn said it was inevitable American would follow BA.
“Every airline is paranoid about cost cutting. But this is not a long-term view and will be detrimental to the industry,” said Lunn.
Jon Snook, American Airlines managing director sales and marketing Europe, Middle East and Africa, defended the decision to cut commissions, which will save the airline around £8m a year.
“BA is our biggest competitor and we are matching them by getting our costs into line. We recognise change is difficult to deal with, so we are giving agents the chance to manage the change by bringing in the new commission in August,” he said.
Snook denied there was any collusion with BA. “We have a bizarre situation in the UK with BA where we are in an alliance with them, but also arch-enemies out to take any business from them,” he added.
Agents expect United Airlines to be the next US airline to slash rates as its Star Alliance partners Lufthansa and SAS have already brought in 7%.
n See Analysis, page 6