Travel agents object to cut in commission

The Federated Association of Travel and Tourism Agents (Fatta) yesterday lodged a claim for damages in the First Hall of the Civil Court against British Airways and the International Air Transport Association.

Fatta claimed that British Airways was violating the Passenger Sales Agency Agreement (PSSA) that existed between the parties.

It said it represented travel agents who had entered into a PSSA with British Airways.

On March 27 the travel agents received a letter from British Airways informing them that, with effect from July 1, the commission payable to the agents by the airline would be reduced from four per cent to one per cent on each airline ticket sold.

Fatta claimed that this decision was unilateral, arbitrary and consisted in an abuse of the airline's dominant position.

The reduced commission rendered the travel agents' position financially unviable.

Such a commission meant that an agent would be paid a commission of 35c on each return ticket from Malta to London.

The travel agents added that by using the electronic ticketing systems on websites, the airlines were competing directly with them.

Fatta added that Iata, which was supposed to safeguard the provisions of the PSSA, had remained passive when British Airways had unilaterally breached the agreement entered into with the travel agents.

In conclusion, Fatta asked the court to declare that both British Airways and Iata had violated the PSSA and that they were responsible for the damages sustained by the travel agents.

Lawyer Michael Tanti Dougall acted for Fatta.