GUILD of Business Travel Agents new chairman Don Lunn has issued a stark warning to commission cutting airlines in his first week of office.
Speaking at his inauguration at the Guild’s annual general meeting in London yesterday, Lunn said airlines would be unprotected against the major agents if they continue to reduce commissions.
“A move away from the current distribution system will put the airlines at the mercy of the major players on the agents’ side, who will charge their clients what they think is the right price and tell the airlines what they are going to pay for their product,” he said.
He said one positive sign was the formation of a group of airlines and agents called the New Millennium, which was set up following a presentation by agents at a meeting of the International Air Transport Association last year.
“It was the first time in 10 years that this global airline body had listened to the travel agents’ viewpoint and we made sure they understood the heavy price that airlines will have to pay if they disturb the commission level and a distribution system that has stood the test of time,”he said.