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British Midland delays agent commission cut


BRITISHMidland has given agents a stay of execution on commission cuts until at least next winter.



However, managing director Austin Reid warned commission changes from all airlines were inevitable.



Reid stressed only dramatic changes by British Airways to its Performance Reward Scheme or commission reductions from rivals would force cuts before next winter.



Agents feared British Midland would cut its 9% international and 7.5% domestic rates to a basic 7% on April 1 to match BA (Travel Weekly December 9 1998).



Reid said: “There has been no switch selling to us so far and we are disappointed. But we are prepared to keep going with what we have so agents can show support for us.”



Reid said the most likely changes in the future would be differing levels in agency commission with rewards being linked to business.



ABTA aviation committee chairman Joe Bourke welcomed the decision, but said Heath-row’s second-biggest carrier had gained business from BA.



Guild of Business Travel Agents Air Working Party chairman Don Lunn said:”It is refreshing British Midland has listened to the trade.”



Lunn said carriers were delaying plans because of the European Commission’s threat to ban PRS-style deals. A decision is expected in the spring.


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