Etihad reviewing commission levels

Etihad reviewing commission levels
By admin

Etihad has said it will continue to review its commission levels amid rising costs.

Speaking to Travel Today last night after Emirates cut commission from 7% to 5% on economy long haul flights and to 3% for trans Tasman economy bookings, Etihad said it would remain focused on cost control.

While not revealing immediate plans to follow its rivals move, Lindsay White, regional general manager for Asia Pacific South and Australasia, said its commission levels — currently at 7% – were “constantly under review”.

“Our target for 2012 is to make a profit and we need to keep increasing revenues and keep a control on costs,” he said.

Among the largest costs were fuel and distribution, he said.

White said there would be no deliberate attempt to exploit its higher commission structure in light of Emirates’ cuts.

“Agents know what remuneration they get at point of sale, they know how much we pay,” he said.

Meanwhile, Etihad chief executive James Hogan revealed last night at an event to mark the carrier’s fifth anniversary of flying to Australia that Virgin Australia would begin to operate flights on behalf of Etihad between Abu Dhabi and Kuala Lumpur from May.

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