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The Honolulu Advertiser
Posted on: Thursday, March 21, 2002

United drops base commission

Associated Press

CHICAGO — United Airlines yesterday joined the nation's other major air carriers in dropping payment of base commissions to travel agents for tickets issued in the United States, Canada, Puerto Rico and the U.S. Virgin Islands.

Delta Air Lines began the move last week, American Airlines and Continental Airlines joined on Monday, and Northwest Airlines followed Tuesday.

United said the decision is effective immediately and applies to all tickets and bookings made through the Internet for domestic and international travel on United and United Express.

Airlines are trying to cut ticket-distribution costs and drive customers from travel agents to their Internet sites. Ticket distribution is the fourth-largest expense for carriers after labor, fuel and aircraft, according the Air Transport Association, the industry's trade group.

The airlines had cut agents' commission six times since 1995.