AIRLINES' COMMISSION SCHEMES

The data has been up-dated for all countries, with the exception of Denmark, France and Ireland

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

Austria
Austrian Airlines	5	5	5	5	5	5	01/04/03	Will be reduced to 5% as of 1 April 2003, with possibility to invoice ticket service charge (see below for more details)
Lufthansa		5	5	5	5	5	01/05/03	Ticket service charge as of 01/05/03
Air Canada, IB, KLM, SAS		5	5	5	5	5	01/06/03	Air Canada and SAS: Ticket service charge as of 01/06/03
AZ, Luxair		5	5	5	5	5	01/07/03
AF, Air New Zealand, Singapore Airlines		5	5	5	5	5	01/08/03	Singapore Airlines Ticket service charge: as of 01/06803
AA, Finnair		5	5	5	5	5	01/09/03
Adria Airways, Aeroflot, Cathay, Eva Air, Olympic Air., South African		9	9	9	9	9
BA, CSA, LOT, Malaysia Air, Malev, Quantas, SN, Styrian Spirit, LX, Tarom, Thai, Turkish Airl., UA, USair, Varig		7	7	7	7	7
Delta		12	12	12

New commission scheme with ticket service charge

1.) Agreement with AUA:

The basic commission has been cut from 7 to 5%. But the Austrian agents are allowed to collect a ticket service charge, which will not change the position as intermediary agent (Handelsvertreterstatus). The amount to be collected can be decided by each travel agent individually:

Austrian Airlines are going to collect as of April 01, 2003:

Euro 8,-- from corporate clients with a turnover of more than Euro 30.000,
Euro 18,-- from individual clients (and leisure)
Euro 13,-- for internet bookings.
For ETIX-Tickets Euro 5,-- will be deducted from the payable ticket price.
The Ticket Service Charge will only be used for international traffic, otherwise VAT-legislation would apply.

2.) Technical Implementation

The Ticket Service Charge has to be entered manually by the counter staff, CRS’s offer an automatic custom check. The "XP-Box" forms part of the Fare Calculation Box and was up to now used only for PTA’s or TOD’’s. The Ticket Service Charge will be entered in this XP-Box and will be included in the total sum of tax/fees/charges" in the lower left corner of the ticket. As of 01.04.2003 invoices issued by the agent should include an item "Fees, Taxes and Charges" (listing departure tax, Airport Service Charge, Security surcharge and Ticket Service Charge. A list will have to be fixed in each travel agent’s office (on a visible spot) showing all taxes, fees and charges. This is required by the Austrian pricing law due to which all the consumers must be well informed of all costs related to his ticket, and due to which the agent will have to give him the final total price when selling his product.

3.) Settlement: The TSC will be settled via the BSP in the following month.

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

Belgium
All IATA carriers	7	7	7	7	7
Lufthansa, AUA and SAS	4	4	4	4	4	01.11.03
And except Virgin	9	9	9	9	9
Low cost		0			0

Croatia
Croatia Airlines	7	9	9	9	9	9	Some multinational clients have started requesting agents’ neto prices. On UHPA’s requests, national carrier
Other airlines flying to Croatia		9	9	9	9	9	and representatives of all other carriers have recently confirmed not to give those clients direct neto prices and that the level of commissions will not change at least until the end of 2003.

Cyprus

Cyprus Airways + all

major airlines

Took effect 01.01.03

All other airlines

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

Denmark	Not up-dated
SAS	0	0	0	0	0	0	01/01/03	SAS has informed Danish agents, that as from January 1^st, 2003, all fares will be net-fares. The will be no commission, but an incentive programme may give the agent between 1 and 1,7 % on sales. As a result, DRF took legal action against SAS Oct. 3^rd.
Maersk Air	5	7	7	7	7	7	1999
Grønlandsfly	4	4	4	4	4	4	1999
Finnair, BA, Al Italia, Aer Lingus, Iberia, KLM, Crossair, Olympic, Austrian, SN Brussels Airlines, TAP		7	7	7	7	7	1999
Lufthansa, Icelandair		0	0	0	0	0	01/01/03	Same as SAS from January 1st, 2003

Finland

Finnair

01/11/99

From Sep 03

SAS, SN Brussels Airl

End of 1999

From Sep 03

France

Not up-dated

Air France

Agreement between SNAV and Air France signed in July 2002 for the next three years:

Base commission of 7% remains
4% commission for net remit fares & internet sales
PSC are commissionable but VAT on domestic flights (19.5%) is taken out of the price as of 01.01.03
Abolition of incentive scheme ‘Plan Qualité Performance’ but maintenance of ‘Qulité Plus’ incentive scheme, which remunerates agents, who have signed a contract with Air France, for quality.

Other airlines

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

Germany
Lufthansa	5	7	7	7	7	9
Air Canada, ANA, Cathy Pacific, Delta, Japan A., Malaysia A., Quantas, Singapore A., South African A., Varig	-	-	-	7	7	9		Cathy Pacific: As of 01.12.01 nego fares: business and first class 7% and economy 9%. Malaysian A. pays 9% for all classes if travel agents renounce on the repayment of commissions on PSC. Air Canada: 1% commission if flight from USA, Canada, Puerto Rico, US, Virgin Islands.
AA, Continental A., United A., Delta	-	-	-	7	7	9		As of February/March 2003 there will be 0% commission on flights originating within the territory of the USA and Canada.
Aer Lingus, Air Malta, Meridiana	-	7	7	-	-	-
Air Litoral, Crossair, Luxair, Portugalia A., Tyrolean A., Gandalf	-	5	5	-	-	-
AF, BA, Iberia, Lan Chile, SAS	-	5	5	7	7	9	Lan Chile only as of 01.05.03
Alitalia, Braathens, KLM	-	7	7	9	9	9
AUA, Icelandair, Lauda A.	-	5	5	-	7	9
Bmi, Deutsche BA	5	5	5	-	-	-
Czech A.	-	7	7	7	7	7	01.01.03
Cyprus A.	5	5	5	5	5	5	01.10.01
Emirates	-	-	-	7	7	-	01.01.03
Finnair	-	5	5	5	5	5	01.08.01
Kenya A., Northwest	-	-	-	9	9	9
LOT Polish A., TAP	-	5	5	9	9	9

Greece

Domestic airlines to

Destinations: AXD, CHQ, HER, IOA, KGS, KVA, RHO, SKG

Olympic 8,5% net

Aegean 8% net

01.11.01

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

Greece – cont’d
Other dom. destinations	Olympic 6,94% Aegean 8%
Generally all airlines except LH, TK, US	-	9	9	9	9	9
American Airlines (CO, US, UA, AA)				7	7	7
KLM		5	5	5	5	5	From 01.08.03	HATTA is fighting this
Lufthansa	5 5	9 5	9 5	9 5	9 5	9 5	From 01.09.03
Turkish	7	9	9	9	9	9
Air France	7	9	9	9	9	9

Hungary
MALEV and all other airlines	7	7	7	7	7	7	01.04.01		After a certain amount of sales, progressive overrider and free airline tickets

Ireland	Not up-dated
Aer Lingus	1	1	1	1	1	1	01/01/03	As of 01.01.03, the commission will be reduced to 1% with an incentive scheme applying to agents selling at least 250.000€ of net flown revenue/six months, i.e. 500.000€ per year. The incentive ranges between 1,2% to 8,4% for net flown revenue between 250.000€ to 9.000.000€.
BA	5	5	5	5	5	5	01.03.02
Rynair	-	-	-	-	-	-	01.12.01
British Midland	7	7	7	-	-	-	01.02.02

Italy
Alitalia	3	7	7	7	7	7	01/05/03	Current negotiation with Alitalia, Meridiana, Airone,
Airone	6,60 4	7 4	7 4	7 4	7 4	7 4	From Jun 03	Trenitalia
Volare, Meridiana, Air Dolomiti, Air Alpes	6	7	7	7	7	7
Alpieagles, klm Exel	8	7	7	7	7	7

Domestic

Europe

International

Last changes effective

Comments

Current negotiations on new remuneration scheme

Italy cont’d
AF, AA, Thai, Singapore A, KLM, Quantas, Icelandair, Air Canada, Crossair, Cyprus, SN Brussels, Bmi, Air Littoral, Lot, AUA, ANA, BA, Air New Zealand, TAP, Iberia, Cathy Pacific, Pga, Varig, Ghana A, Delta, Finnair, El Al Israel, United, Royal Air Maroc, LH,	-	7	7	7	7	7
Malaysian, China Air, Aeroflot, Carpatair, Air Algerie	-	9	9	9	9	9

* flat fee scheme:

Domestic flights	International flights	Non IATA flights	Change / repayment	Reconfirmation
5 €	10 €	15 €	5 €	5 €

The Netherlands
Air France, Alitalia, BA, Iberia, Martinair, SAS, Transavia, Air Lingus, LH, AUA, Bmi, Cyprus A., Finnair, SAS, SN Brussels, Swiss, TAP, EI, SU, etc	-	7	7	7	7	7
AA, Continental A., Delta, United A.				7	7	7
KLM, Kenya Airways, NW								01.01.2002	Service fee of 34 euro
Malev								01.04.2002	Service fee of 34 euro
Olympic A., Tarom, Turkish A., AH, PS, MS, TK, VS, VG, Aerolineas, etc	-	9	9	9	9	9
	Domestic	Europe		International			Last changes effective	Comments	Current negotiations on new remuneration scheme
		C	Y	F	C	Y

Norway
All airlines	Net fare scheme								Individual market support and incentives schemes

Portugal
TAP	6	6	6	6	01/02/03	Negotiation on an Ticket Issuance Fee in the ticket
British Airways		6	6	6	01/04/03
Air France, KLM	7	7	7	7
LH		7	7	7	01/04/01

Romania
KL, RO, MA, AF, AZ, LK, OS, OK	7	7	7	7	7	01.12.02	Incentive scheme of RO and MA (to Budapest) for C class = 10%
LX	7	7	7	7	7	01.02.03
LO, EK, AA	9	9	9	9	9

Spain
Iberia	6,5	6,75	6,75	7	7	7	01/06/02
Air Europa	8*	13	10,5	12	12	10,5	05.02	* 12% USA
Spanair	7,5	9	9	7,5	9	9	04.02

Sweden
SAS	Net fare scheme								SAS followed by Star Alliance partners introduced a new distribution scheme, unilaterally decided and recently implemented solely onto the Scandinavian market. The scheme has not been endorsed by the SRF members and is now presented as ‘accept SAS’ conditions or lose your sales licences’. The NET fare scheme is now in place, the agent acquires SAS tickets at as non-commissionable net price. They are allowed to add on a fee to cover their distribution costs. Airlines are doing the same. The agents can decide on their mark-up. SRF has now filed a request to the Swedish competition authorities the right to negotiate remuneration for the sale of SAS tickets. The aim is to obtain an exemption under the Competition Act so as to negotiate the conditions of remuneration with the dominant carrier. The outcome is expected in June 2003. Positive informal comments given.
	Domestic	Europe		International			Last changes effective	Comments	Current negotiations on new remuneration scheme
		C	Y	F	C	Y

Switzerland
Swiss	7	7	7	7	7	7	Incentives	Will be discussed on the next meeting with SWISS
Star Alliance	7	7	7	7	7	7	on a bilateral
One world	7	7	7	7	7	7	basis are
Sky Team	7	7	7	7	7	7	existing

United Kingdom
British Airways	See footnote						01/06/02	See footnote
British Midland bmi	4	4	4	4	4	4	01/01/03
Virgin Atlantic Airways	7	4	7	4	4	7	01/04/03
Majority of European, North American + other carriers	4	4	4	4	4	4	01/01/03
American airlines								Some airlines will not pay commission on tickets issued for travel originating in the USA (including Puerto Rico and the US Virgin Islands) and Canada

British Airways

Route	Selling Class	Payment per sector
Short haul	Economy	£2.50
Short haul	Premium/full economy	£5.00
Long haul	Discount economy	£11
Long haul	Premium/full economy	£20
+ a Money Collection Payment of 1.25% where the agent makes a cash payment through BSP

Franchise partners: British Mediterranean Airlines, BA CitiExpress, GB Airways, Maersk Air UK Ltd, SUN-AIR of Scandinavia, Regional Airways(of Kenya) and Zambian Airways all apply Booking Payments.

Other franchise partners: Loganair and Comair continue to pay a percentage commission