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AIRLINES' COMMISSION SCHEMES

The data has been up-dated for all countries, with the exception of Denmark, France and Ireland

 

 

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

   

C

Y

F

C

Y

     

Austria

                 

Austrian Airlines

5

5

5

5

5

5

01/04/03

 

Will be reduced to 5% as of 1 April 2003, with possibility to invoice ticket service charge (see below for more details)

Lufthansa

 

5

5

5

5

5

01/05/03

 

Ticket service charge as of 01/05/03

Air Canada, IB, KLM, SAS

 

5

5

5

5

5

01/06/03

 

Air Canada and SAS: Ticket service charge as of 01/06/03

AZ, Luxair

 

5

5

5

5

5

01/07/03

   

AF, Air New Zealand, Singapore Airlines

 

5

5

5

5

5

01/08/03

 

Singapore Airlines Ticket service charge: as of 01/06803

AA, Finnair

 

5

5

5

5

5

01/09/03

   

Adria Airways, Aeroflot, Cathay, Eva Air, Olympic Air., South African

 

9

9

9

9

9

     

BA, CSA, LOT, Malaysia Air, Malev, Quantas, SN, Styrian Spirit, LX, Tarom, Thai, Turkish Airl., UA, USair, Varig

 

7

7

7

7

7

     

Delta

 

12

12

12

         

New commission scheme with ticket service charge

1.) Agreement with AUA:

The basic commission has been cut from 7 to 5%. But the Austrian agents are allowed to collect a ticket service charge, which will not change the position as intermediary agent (Handelsvertreterstatus). The amount to be collected can be decided by each travel agent individually:

Austrian Airlines are going to collect as of April 01, 2003:

Euro 8,-- from corporate clients with a turnover of more than Euro 30.000,
Euro 18,-- from individual clients (and leisure)
Euro 13,-- for internet bookings.
For ETIX-Tickets Euro 5,-- will be deducted from the payable ticket price.
The Ticket Service Charge will only be used for international traffic, otherwise VAT-legislation would apply.

2.) Technical Implementation

The Ticket Service Charge has to be entered manually by the counter staff, CRS’s offer an automatic custom check. The "XP-Box" forms part of the Fare Calculation Box and was up to now used only for PTA’s or TOD’’s. The Ticket Service Charge will be entered in this XP-Box and will be included in the total sum of tax/fees/charges" in the lower left corner of the ticket. As of 01.04.2003 invoices issued by the agent should include an item "Fees, Taxes and Charges" (listing departure tax, Airport Service Charge, Security surcharge and Ticket Service Charge. A list will have to be fixed in each travel agent’s office (on a visible spot) showing all taxes, fees and charges. This is required by the Austrian pricing law due to which all the consumers must be well informed of all costs related to his ticket, and due to which the agent will have to give him the final total price when selling his product.

3.) Settlement: The TSC will be settled via the BSP in the following month.

 

 

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

   

C

Y

F

C

Y

     

Belgium

                 

All IATA carriers

 

7

7

7

7

7

     

Lufthansa, AUA and SAS

 

4

4

4

4

4

01.11.03

   

And except Virgin

 

9

9

9

9

9

     

Low cost

   

0

   

0

     

Croatia

                 

Croatia Airlines

7

9

9

9

9

9

   

Some multinational clients have started requesting agents’ neto prices. On UHPA’s requests, national carrier

Other airlines flying to Croatia

 

9

9

9

9

9

   

and representatives of all other carriers have recently confirmed not to give those clients direct neto prices and that the level of commissions will not change at least until the end of 2003.

Cyprus

                 

Cyprus Airways + all

major airlines

 

7

7

7

7

7

Took effect 01.01.03

   

All other airlines

 

9

9

9

9

9

     

 

 

 

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

   

C

Y

F

C

Y

     

Denmark

Not up-dated

     

SAS

 

0

0

0

0

0

0

01/01/03

 

SAS has informed Danish agents, that as from January 1st, 2003, all fares will be net-fares. The will be no commission, but an incentive programme may give the agent between 1 and 1,7 % on sales. As a result, DRF took legal action against SAS Oct. 3rd.

Maersk Air

5

7

7

7

7

7

1999

   

Grønlandsfly

4

4

4

4

4

4

1999

   

Finnair, BA, Al Italia, Aer Lingus, Iberia, KLM, Crossair, Olympic, Austrian, SN Brussels Airlines, TAP

 

7

7

7

7

7

1999

   

Lufthansa, Icelandair

 

0

0

0

0

0

01/01/03

 

Same as SAS from January 1st, 2003

Finland

                 

Finnair

5

0

7

0

7

0

7

0

7

0

7

0

01/11/99

From Sep 03

   
SAS, SN Brussels Airl  

7

0

7

0

7

0

7

0

7

0

End of 1999

From Sep 03

   

France

Not up-dated

     

Air France

7

7

7

7

7

7

   

Agreement between SNAV and Air France signed in July 2002 for the next three years:

  1. Base commission of 7% remains
  2. 4% commission for net remit fares & internet sales
  3. PSC are commissionable but VAT on domestic flights (19.5%) is taken out of the price as of 01.01.03
  4. Abolition of incentive scheme ‘Plan Qualité Performance’ but maintenance of ‘Qulité Plus’ incentive scheme, which remunerates agents, who have signed a contract with Air France, for quality.
Other airlines                  

 

 

 

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

   

C

Y

F

C

Y

     

Germany

                 

Lufthansa

5

7

7

7

7

9

     

Air Canada, ANA, Cathy Pacific, Delta, Japan A., Malaysia A., Quantas, Singapore A., South African A., Varig

-

-

-

7

7

9

 

 

 

 

 

Cathy Pacific: As of 01.12.01 nego fares: business and first class 7% and economy 9%.

Malaysian A. pays 9% for all classes if travel agents renounce on the repayment of commissions on PSC.

Air Canada: 1% commission if flight from USA, Canada, Puerto Rico, US, Virgin Islands.

AA, Continental A., United A., Delta

-

-

-

7

 

7

9

   

As of February/March 2003 there will be 0% commission on flights originating within the territory of the USA and Canada.

Aer Lingus, Air Malta, Meridiana

-

7

7

-

-

-

     

Air Litoral, Crossair, Luxair, Portugalia A., Tyrolean A., Gandalf

-

5

5

-

-

-

     

AF, BA, Iberia, Lan Chile, SAS

-

5

5

7

7

9

Lan Chile only as of 01.05.03

   

Alitalia, Braathens, KLM

-

7

7

9

9

9

     

AUA, Icelandair, Lauda A.

-

5

5

-

7

9

     

Bmi, Deutsche BA

5

5

5

-

-

-

     

Czech A.

-

7

7

7

7

7

01.01.03

   

Cyprus A.

5

5

5

5

5

5

01.10.01

   

Emirates

-

-

-

7

7

-

01.01.03

   

Finnair

-

5

5

5

5

5

01.08.01

   

Kenya A., Northwest

-

-

-

9

9

9

     

LOT Polish A., TAP

-

5

5

9

9

9

     

Greece

                 

Domestic airlines to

Destinations: AXD, CHQ, HER, IOA, KGS, KVA, RHO, SKG

Olympic 8,5% net

Aegean 8% net

         

01.11.01

   

 

 

 

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

   

C

Y

F

C

Y

     

Greece – cont’d

                 

Other dom. destinations

Olympic 6,94%

Aegean

8%

               

Generally all airlines except LH, TK, US

-

9

9

9

9

9

     

American Airlines (CO, US, UA, AA)

     

7

7

7

     

KLM

 

5

5

5

5

5

From 01.08.03

 

HATTA is fighting this

Lufthansa

5

5

9

5

9

5

9

5

9

5

9

5

 

From 01.09.03

   

Turkish

7

9

9

9

9

9

     

Air France

7

9

9

9

9

9

     

Hungary

                 

MALEV and all other airlines

7

7

7

7

7

7

01.04.01

 

After a certain amount of sales, progressive overrider and free airline tickets

Ireland

Not up-dated

   

Aer Lingus

1

1

1

1

1

1

01/01/03

 

As of 01.01.03, the commission will be reduced to 1% with an incentive scheme applying to agents selling at least 250.000€ of net flown revenue/six months, i.e. 500.000€ per year. The incentive ranges between 1,2% to 8,4% for net flown revenue between 250.000€ to 9.000.000€.

BA

5

5

5

5

5

5

01.03.02

   

Rynair

-

-

-

-

-

-

01.12.01

   

British Midland

7

7

7

-

-

-

01.02.02

   

Italy

                 

Alitalia

3

7

7

7

7

7

01/05/03

 

Current negotiation with Alitalia, Meridiana, Airone,

Airone

6,60

4

7

4

7

4

7

4

7

4

7

4

From Jun 03

 

Trenitalia

Volare, Meridiana, Air Dolomiti, Air Alpes

6

7

7

7

7

7

     

Alpieagles, klm Exel

8

7

7

7

7

7

     

 

 

 

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

   

C

Y

F

C

Y

     

Italy cont’d

                 

AF, AA, Thai, Singapore A, KLM, Quantas, Icelandair, Air Canada, Crossair, Cyprus, SN Brussels, Bmi, Air Littoral, Lot, AUA, ANA, BA, Air New Zealand, TAP, Iberia, Cathy Pacific, Pga, Varig, Ghana A, Delta, Finnair, El Al Israel, United, Royal Air Maroc, LH,

-

7

7

7

7

7

     

Malaysian, China Air, Aeroflot, Carpatair, Air Algerie

-

9

9

9

9

9

     

* flat fee scheme:

Domestic flights

International flights

Non IATA flights

Change / repayment

Reconfirmation

5 €

10 €

15 €

5 €

5 €

The Netherlands

                 

Air France, Alitalia, BA, Iberia, Martinair, SAS, Transavia, Air Lingus, LH, AUA, Bmi, Cyprus A., Finnair, SAS, SN Brussels, Swiss, TAP, EI, SU, etc

-

7

7

7

7

7

     

AA, Continental A., Delta, United A.

     

7

7

7

     

KLM, Kenya Airways, NW

             

01.01.2002

Service fee of 34 euro

Malev

             

01.04.2002

Service fee of 34 euro

Olympic A., Tarom, Turkish A., AH, PS, MS, TK, VS, VG, Aerolineas, etc

-

9

9

9

9

9

     
 

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

   

C

Y

F

C

Y

     

Norway

                 

All airlines

Net fare scheme

   

Individual market support and incentives schemes

Portugal

                 

TAP

6

   

6

6

6

01/02/03

 

Negotiation on an Ticket Issuance Fee in the ticket

British Airways

     

6

6

6

01/04/03

   

Air France, KLM

7

   

7

7

7

     

LH

     

7

7

7

01/04/01

   

Romania

                 

KL, RO, MA, AF, AZ, LK, OS, OK

 

7

7

7

7

7

01.12.02

 

Incentive scheme of RO and MA (to Budapest) for C class = 10%

LX

 

7

7

7

7

7

01.02.03

   

LO, EK, AA

 

9

9

9

9

9

     

Spain

                 

Iberia

6,5

6,75

6,75

7

7

7

01/06/02

   

Air Europa

8*

13

10,5

12

12

10,5

05.02

* 12% USA

 

Spanair

7,5

9

9

7,5

9

9

04.02

   

Sweden

                 

SAS

Net fare scheme

   

SAS followed by Star Alliance partners introduced a new distribution scheme, unilaterally decided and recently implemented solely onto the Scandinavian market. The scheme has not been endorsed by the SRF members and is now presented as ‘accept SAS’ conditions or lose your sales licences’.

The NET fare scheme is now in place, the agent acquires SAS tickets at as non-commissionable net price. They are allowed to add on a fee to cover their distribution costs. Airlines are doing the same. The agents can decide on their mark-up.

SRF has now filed a request to the Swedish competition authorities the right to negotiate remuneration for the sale of SAS tickets. The aim is to obtain an exemption under the Competition Act so as to negotiate the conditions of remuneration with the dominant carrier. The outcome is expected in June 2003. Positive informal comments given.

 

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

   

C

Y

F

C

Y

     

Switzerland

                 

Swiss

7

7

7

7

7

7

 

Incentives

Will be discussed on the next meeting with SWISS

Star Alliance

7

7

7

7

7

7

 

on a bilateral

 

One world

7

7

7

7

7

7

 

basis are

 

Sky Team

7

7

7

7

7

7

 

existing

 

United Kingdom

                 

British Airways

See footnote

01/06/02

 

See footnote

British Midland bmi

4

4

4

4

4

4

01/01/03

   

Virgin Atlantic Airways

7

4

7

4

4

7

01/04/03

   

Majority of European, North American + other carriers

4

4

4

4

4

4

01/01/03

   

American airlines

               

Some airlines will not pay commission on tickets issued for travel originating in the USA (including Puerto Rico and the US Virgin Islands) and Canada

British Airways

Route Selling Class Payment per sector
Short haul Economy

£2.50

Short haul Premium/full economy

£5.00

Long haul Discount economy

£11

Long haul Premium/full economy

£20

+ a Money Collection Payment of 1.25% where the agent makes a cash payment through BSP

 

Franchise partners: British Mediterranean Airlines, BA CitiExpress, GB Airways, Maersk Air UK Ltd, SUN-AIR of Scandinavia, Regional Airways(of Kenya) and Zambian Airways all apply Booking Payments.
Other franchise partners: Loganair and Comair continue to pay a percentage commission

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