SF Gate: America West dumps commissions on ticket sales, joining other major carriers

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This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
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ational1046EST0484.DTL
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Saturday, March 23, 2002 (AP)
America West dumps commissions on ticket sales, joining other major carriers



   (03-23) 07:46 PST TEMPE, Ariz. (AP) --
   America West Airlines has joined other major carriers in dropping ticket
commissions paid to travel agents.
   In place of the commissions, the carrier said Friday that it will now pay
travel agents bonuses of up to 5 percent if their ticket sales exceed a
base level, which America West will set.
   The airline had been paying commissions of 5 percent, up to $20, on each
round-trip ticket sold by travel agents.
   Delta, United, American, Continental and Northwest also have dropped the
commissions for travel agents.
   Airlines are trying to cut ticket-distribution costs and draw customers =
to
their Internet sites. Ticket distribution is the fourth-largest expense
for carriers after labor, fuel and aircraft, according to the Air
Transport Association, the industry's trade group.
   Travel agents say scrapping commissions will force some agencies to close
and cause passengers to pay more for tickets because they will have to
book their trips directly with airlines.
   "In essence, this is a fare increase, putting more money in the pockets =
of
the airlines," said Pam Stewart, owner of Stewart Travel of Mesa.

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Copyright 2002 AP

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