America West dumps commissions

TEMPE, ARIZONA - America West Airlines has joined other major carriers in dropping ticket commissions paid to travel agents. <br> <br> In place of the commissions, the carrier said Friday that it will now pay travel agents bonuses of up to 5 percent if their ticket sales exceed a base level, which America West will set. <br> <br> The airline had been paying commissions of 5 percent, up to $20, on each round-trip ticket sold by travel agents. <br> <br> Delta, United, American, Continental and Northwest also have dropped the commissions for travel agents. <br> <br> Airlines are trying to cut ticket-distribution costs and draw customers to their Internet sites. Ticket distribution is the fourth-largest expense for carriers after labor, fuel and aircraft, according to the Air Transport Association, the industry&#39;s trade group. <br> <br> Travel agents say scrapping commissions will force some agencies to close and cause passengers to pay more for tickets because they will have to book their trips directly with airlines. <br> <br> ``In essence, this is a fare increase, putting more money in the pockets of the airlines,&#39;&#39; said Pam Stewart, owner of Stewart Travel of Mesa.

http://accesswdun.com/article/2002/3/196998