Travel agents boost pressure on Air NZ

By CATHY ARONSON

Air New Zealand is under mounting pressure to reverse its decision to take away the travel agent commission.

Some travel agents have stopped booking flights with Air NZ and the largest travel agency, Flight Centre, has threatened to take away $205 million of business a year.

Qantas has sent letters to all travel agents reassuring them they will continue to pay a commission.

Travel agents book 60 per cent of domestic flights in New Zealand and 90 per cent of international flights.

Air NZ plans to remove a 4 per cent commission for each domestic ticket sale when its new cut-price express flights start in October.

Sales executive Norm Thompson said tickets would be sold online to save costs and reduce ticket prices.

He said travel agents would still receive a commission for reaching target sales.

The Travel Agents Association is due to present a strong position to Air NZ at a meeting today.

President James Langton said travel agents were concerned commission would also be dropped for transtasman and international routes.

Mr Langton said there was an international agreement that travel agents should be paid for selling tickets, or distributing a product.

Flight Centre is considering withdrawing its business sooner than October, when the commission is dropped.

Marketing manager David Burns said Air NZ had not offered a solution and did not seem to be taking the threat seriously.

Christchurch Travel Masters manager Geoff Bouterey said in the first four days his agency stopped promoting Air NZ, the airline lost the amount it paid the company in commission a year. The business was redirected to other airlines.

Mr Bouterey said Air NZ was taking advantage of a dominant domestic position but Qantas could increase its presence and pick up business.