Emirates ends agents' fee |
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EmiratesEmirates
is to abolish the base (seven per cent) commission to UAE travel agents starting October this year in the face of rising fuel prices, according to a senior airline executive."EmiratesEmirates
will align itself with current market practices and move to zero per cent commission on October 1, 2008. The staggering increase in fuel prices has had an inflationary effect on all our operational costs, forcing us to revise our policy," Majid Al Mualla, EmiratesEmirates' Vice-President for Commercial Sales (UAE), told Emirates Business.The carrier, which is already on zero per cent commission in Bahrain, Kuwait, Qatar and Jordan, will now instead introduce a seven per cent service fees on all EmiratesEmirates
revenue tickets sold at the airline's retail outlets in the UAE. "We recommend that all our trade partners also introduce a similar percentage-based service fee of up to seven per cent on tickets sold to their customers," said Al Mualla.
Other Middle East carriers such as Etihad AirwaysEtihad Airways
, Qatar AirwaysQatar Airways and Gulf AirGulf Air confirmed they would follow suit. While Qatar AirwaysQatar Airways and Gulf AirGulf Air said they plan to abolish travel agents' commissions in the UAE this year, Etihad said it is reviewing its commission policy. "Commission levels of payments to travel agents worldwide are coming down and as the market becomes more mature Etihad AirwaysEtihad Airways
is naturally reviewing its commission policy with regard to such fees in the Middle East," said Geert W Boven, Etihad AirwaysEtihad Airways' Executive Vice-President for Sales and Services. "We have been looking at it for some time. We plan to introduce zero commission in the UAE soon," added Qatar AirwaysQatar Airways
' spokesperson. The Doha-based carrier moved to zero per cent commission in Kuwait and Doha early this year. Gulf AirGulf Air
, which abolished commissions in Kuwait, Oman and Bahrain in 2006, following the move by European and US carriers, said the UAE is next in line. "In the UAE we still have the commission system but we would be abolishing it before year-end," said Adnan Malek, a spokesperson.By Shweta Jain
© Emirates Business 24/7 2008
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