ECto propose crackdown on override deals

THE European Commission is set to unveil draconian proposals for partnerships between airlines and agents next month (Travel Weekly July 15 1998).

Brussels is expected to tell airlines that dominate a particular route they cannot pay override commissions on that route. The proposals are set to affect other corporate deals, including whether overrides are paid on a route-specific basis or part of a package.

The Guild of Business Travel Agents is lobbying the EC to keep the current payment scheme.

GBTA chairman Tony Hughes said:”The EC will not make a decision before February or March, but it is expected to say overrides given by dominant carriers would be illegal.”

n The GBTA was due to meet British Midland yesterday to persuade the airline to keep its 9% commission rate for agents.

British Midland is set to announce a new payment structure this month which it plans to introduce in the summer. The new scheme will match British Airways' 7% base rate.