CUTS TIMETABLE
September 1997: United Airlines cuts US rates from 10% to 8%. Other carriers follow suit prompting fears that the trend will cross the Atlantic.
November 1997: fears realised as British Airways announced it was cutting standard 9% international commission and 7.5% domestic rate to a basic 7% for all sales. BA tries to soften the blow by promising top-up payments with its Performance Reward Scheme. BA also unveils direct-sell low-cost airline Go. All plans revealed on the day World Travel Market opened.
December 1997: BA’s PRS starts with a pledge that agents can earn up to an extra three percentage points on top of the 7% for increased sales.
January 1998: BA introduces 7% flat commission rate.
June 1998: KLMfollows BA with 7% basic rate. It allows agents to earn up to 10% with extra bookings.
November 1998: United again cuts US agents’ payments by introducing $100 cap for international return tickets. Other airlines follow suit.
December 1998: BA franchise carrier British Regional Airlines brings in 7% rate.
February 1999: BA announces it will ditch the ill-fated PRS on April 1 claiming agents could not hit targets. Agents said it did not work as sales were switched to carriers paying 9% commission.
April 1999: SAS reduces basic commission to 7%, but promise increased payments to top sellers. BA franchise carriers GB Airways, Cityflyer, Brymon Airways and Maersk Air come into line with BA.
May 1999: Alitalia cuts commission from 9% to 7%. American Airlines follows BA with a cut to 7%. Future cuts expected from Star Alliance and Oneworld carriers, other BA franchise airlines, British Midland, Swissair, Air France, Sabena and Aer Lingus.