CATHAY Pacific’s cutting
of commission may
be in breach of Iata’s
Passenger Agency Sales
Agreement. In TNW July 3,
it was reported that, effective
from July 1, the airline
would cut commission from
1,01% to 0%.
Airlines are legally bound
to remunerate agents, says
Janet Aldworth, owner of
Sure Voyager Travel, and the
agent representative on the
APJC (Agency Programme Joint
Council). This remuneration
forms part of the Iata
Passenger Agency Sales
Agreement documentation
to which Iata airlines are
contractually bound. This
agreement has been in
place since the late 2000s
and was drawn up by Iata’s
Global Consultative Council,
Janet says.
TNW understands that
clause 824 of Iata’s Passenger
Agency Manual states that “an
airline shall remunerate the
agent”. Agents claim that this
is, therefore, not a negotiable
clause for airlines.
The wording of the resolution
is as follows: “For the sale of
air transportation and ancillary
services by the agent under
this agreement the carrier shall
remunerate the agent in a
manner and amount as may be
stated from time to time and
communicated to the agent by
the carrier. Such remuneration
shall constitute full
compensation for the services
rendered to the carrier.”
Any commercial override
agreements that Cathay Pacific
has in place with agents are
completely separate contracts
and do not negate the
airline’s responsibility to honour
the terms of the Passenger
Agency Sales Agreement,
says Janet.
Asata has taken the matter
up with Iata and is currently
waiting for their response, she
says. In the meantime, she
encourages agents to continue
issuing tickets, including the
current 1,01% commission
level, saying that Cathay would
need to issue ADMs for every
ticket should they wish to
practically enforce the ruling.
TNW contacted Cathay Pacific
and Iata for comment but had
not received a response at
time of going to print.
