SAS has confirmed it is to reduce its basic commission for UK agents in line with other global carriers (Travel Weekly February 17).
It is expected to follow Star Alliance partner Lufthansa by reducing rates from 9% to 7%.
A top-up scheme is also set to be introduced to allow SAS’ best agents achieve extra commission payments.
Senior vice-president sales and marketing Erik Strand declined to comment further on the carrier’s present plans but said: “Commission structures are being changed worldwide and SAS will be a part of that process.”
Despite having US and European Union clearance to co-operate with Lufthansa on commissions, Strand said SAS would act independently with a new payment structure.
The change is set for the summer, as SAS looks to making savings under increasingly difficult trading conditions in the Scandinavian market due to the region being targeted by low-cost airlines. Direct-sell Go, and Ryanair, which pays 7.5% commission, both fly to all core SAS destinations.
The SAS cut follows its decision to slash rates for agents in its home markets.
On January 1, SAS introduced a 4% basic rate for Scandinavian retailers from a previous 9%. This can increase to 6% or 6.5% depending on the volume, destination and type of tickets sold.
United Airlines, Thai Airways, Varig and Air Canada have yet to make a decision about coming into line with their Star Alliance partner Lufthansa after it cuts rates on April 1.
Air Canada general passenger sales manager Robert Atkinson said Air Canada was closely monitoring airlines which have cut commissions.
He said: “If others go down that route we can not ignore that.
“We will monitor what BA and other big players do and take stock of that to remain cost-competitive.”
He denied Air Canada and its Star Alliance partners discuss co-operation on commissions due to government rules on negotiating joint pricing.
Atkinson added joint-commission structures were a long way down the line.