Two more follow 1% trend

BMI has followed flag carrier British Airways by cutting commission to 1%.

The airline will make the change from January 1, as predicted in Travel Weekly (September 1).

A BMI spokeswoman said: “This decision follows a period of consultation and distribution strategy considerations with key industry partners.”

The move is part of the carrier’s Blue Sky cost-cutting project.

American Airlines has also dropped to 1%, the latest Oneworld carrier to do so.

The airline said it will make the change from December 10, but denied it was influenced by Oneworld partner BA. An official statement said: “The change to commission levels reflects the fact that American Airlines operates in a highly competitive market where it is not financially viable to sustain costs that exceed those of its competitors.”

Both airlines said they wanted to maintain their relationship with the trade, despite the cuts.

American follows alliance partners BA, Iberia and Aer Lingus in cutting commission rates.

Advantage director of business travel Norman Gage warned airlines they could be accused of collusion.