(Adds Air Malta's reaction)

The Federated Association of Travel and Tourism Agencies (Fatta) has filed a judicial process against Air Malta complaining that the commission paid by the airline on tickets sold was being decreased to 0.1 per cent as from tomorrow.

In its protest, signed by Michael Tanti Dougall, Fatta said this was ridiculous and not financially viable.

The commission had originally been nine per cent, it was dropped to seven per cent in July 2001, to four per cent in November 2003, and subsequently to one per cent.

The commission will be reduced further to 0.1 per cent tomorrow. This would put travel agents in a very difficult situation, and render them worse off than people who were in precarious employment.

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

Fatta accused the airline of taking advantage of its favourable position in the market and said that its action was abusive.

It held the airline responsible for damages and appealed to it to reconsider the rates.

AIR MALTA DISAPPOINTED

In a reaction Air Malta said it was disappointed to learn through the media about the judicial protest.

It said it was particularly surprised as the airline had offered to delay the
change in commission levels by three months to November 1 to
provide a transitional period.

"Over the last two years, the airline has been committed to improving
relationships with the travel trade and has taken several measures to
provide the trade with greater opportunities to sell Air Malta products on
a level playing field.

"Air Malta conducts business in an extremely competitive market place.
Many of our key competitors have paid no commission for many years,
whilst dramatically growing their market share with local travel agents."

The airline said it will not make any further comment until it had an
opportunity to consider the protest, which it had not yet been served.