EFFECTIVE November 1,
United Airlines will
implement an amended
ADM admin fee structure.
Previously, the airline only
charged an admin fee for
all ADM values greater than
US$10 (R152). The penalty
was $50 (R758).
The ADM admin fee structure
is now tiered and is as follows:
Tax/commission and refund
error ADMs will incur a $5
(R75) admin fee.
ADMs less than $5 in value
will not incur any admin fees.
ADMs between the value of
$5 and $19,99 (R75-R303)
will incur a $20 (R303)
admin fee.
ADMs between the value
of $20 and $49,99
(R303-R757) will incur a $40
(R607) admin fee.
ADMs over the value of $50
(R757) will incur an admin
fee of $55 (R834).
United Airlines has advised
that it will use the Iata 5D
rates for conversion to
local country currency when
implementing the ADM admin
fees.
Head of press for Europe,
Middle East, Africa and India,
Kevin Johnston, told TNW the
airline’s approach to ADMs in
South Africa was in line with
that of other international
markets.
An anonymous Cape Townbased agent says she is
unsurprised to see airlines
updating their admin fees for
ADM issuance. “Airlines are
looking for additional revenue
streams and issuing admin
fees on top of an ADM is an
easy way to bring in additional
funds as the ADM fees are
deducted directly from an
agent’s BSP,” says the agent.
“There is very little that agents
can do about the charges, as
these decisions were made
at an airline head office level
and local airline staff are
simply following orders by
implementing them.”
Accountant at Sure Millway
Travel, Zita Rodrigues,
believes ADM admin fees are
daylight robbery and questions
why an airline needed to
charge an agency up to R800
extra for the collection of an
airline-imposed fine.
“ADMs are generally issued
after a consultant has made
an honest mistake, such as
inserting the wrong two-letter
code for a particular airline
when reissuing a ticket. It
would be so much easier if
airlines could standardise
things like reissue codes in
order to reduce the likelihood
of an agent making an error
and incurring an ADM in the
first place,” she says.
United Airlines will
launch direct, non-stop flights
from Cape Town to New York’s
Newark airport
in December.
