STEVEN Freudmann will continue as ABTA president for a third year after he was elected unopposed by the association’s board.
It will be Freudmann’s final year at the helm as three successive years in office is the maximum term allowed under ABTA rules.
Travel Agents Council chairman Stephen Bath and Tour Operators Council chairman John Bond are also expected to be re-elected unopposed this week. Freudmann said the main objective of the year was to oversee the radical shake-up of the association.
Star Alliance carriers are to follow other airlines by cutting agents’ commission across the board, a senior executive of one of the members has revealed, reports Paul Norris in Sydney.
Lufthansa chairman and chief executive Jurgen Weber told Travel Weekly cuts from all Star Alliance airlines are imminent.
The German carrier and Star Alliance partner SAS are currently the only two members to have reduced commission from 9% to 7%. The reduced rate came into the market on April 1. However, Weber said:”Other carriers will follow if there is a lead, including all Star Alliance carriers. Distribution is more costly than our entire personnel costs. There is a need for a cut.”
Weber cited agents’ commission and computer reservation systems as being the biggest costs for an airline.
Many agents feel United Airlines, a co-founder of Star Alliance, will be the next to reduce rates.
Chairman and chief executive Gerry Greenwald refused to say what United’s plans were, claiming a case four years ago in the USprevented him from speaking about commissions.
Virgin Atlantic has cut commission on business-class flights in the US, but stressed its UK policy would not change.
n See Aviation special report, pages 24 and 25