Airline slashes commission

Aer Lingus is to slash the commission it pays to travel agents from 5 per cent to 1 per cent. The change, which has been heavily criticised by the Irish Travel Agents' Association (ITAA), is likely to deliver annual savings in excess of €10 million for the troubled airline.

An Aer Lingus spokeswoman said yesterday that the savings would be passed directly on to customers, with business-class passengers to be the main beneficiaries. Leisure fares at the airline have been cut by up to 60 per cent over the last year, with similar business-class reductions to be implemented over the next two months.

The forthcoming commission cut will be the third such reduction absorbed by travel agents within the last two years, with commission having fallen from 9 per cent in 2001. The average commission paid by airlines in Europe is about 7 per cent. In the US, where Aer Lingus reduced its commission from 5 per cent to zero in June, the norm is much lower.

ITAA chief executive Mr Brendan Moran is calling for the latest commission decision to be reversed before it comes into force at the start of next year.

He said that approximately 60 per cent of Irish travel agents' trade comes from air travel, with 70 per cent of that comprised of Aer Lingus flights. "It's a very, very grave situation for our members. Their very livelihoods have been put at risk," said Mr Moran. The association has written to the Minister for Transport, Mr Brennan, requesting a meeting.