Travel agents are up in arms over an Air Malta decision to lower their commission on ticket sales to 0.1 per cent, calling it a “ridiculous” amount.

The Federated Association of Travel and Tourism Agencies voiced its concern in a judicial protest filed yesterday, as the airline defended its decision by saying that its key competitors did not pay commissions.

Agencies once earned a nine per cent commission from Air Malta. This was lowered to seven per cent in July 2001, four per cent in November 2003 and later to one per cent. The association said Air Malta would be reducing the commission again from today, putting them in a precarious situation.

The new rate was ridiculous and not financially viable, it complained.

Air Malta’s decision was also in breach of the passenger sales agency agreement, it said.

It accused the airline of taking advantage of its favourable position in the market, calling the action abusive and holding Air Malta responsible for any damages.

In its protest, signed by lawyer Michael Tanti Dougall, the association asked the airline to reconsider the commission rate.

In a statement, Air Malta said it was disappointed to learn about the judicial protest as it had always sought to improve relations with the travel trade.

It was particularly surprised as it had offered to delay the change in commission levels by three months to November to provide a transitional period.

Air Malta conducted its business in a very competitive market place and many of its key competitors had not paid commission for many years.

It would not comment further while it considered the protest.