American Trans Air cuts travel-agent pay

Associated Press

INDIANAPOLIS — American Trans Air said yesterday it has joined other major airlines in dropping payment of base commissions for tickets issued by U.S. travel agents.

The Indianapolis-based carrier said the move was effective immediately, and applies to all tickets and bookings made through the Internet for travel on ATA and ATA Connection, which is operated by Chicago Express Airlines.

Delta Air Lines made a similar announcement last week, with at least three other carriers following suit this week: United, American, Continental and Northwest.

ATA is the nation's 10th largest airline and the largest North American operator of commercial and military charters. The airline operates hubs at Chicago's Midway Airport and Indianapolis International Airport, with most of its routes in the Midwest and East.

ATA would not say how much it now pays in base commissions to agents.

"It's seven digits (figures) every month, for us," said Donald Moonjian, vice president of marketing.

Travel agents still book about 70 percent of flights, despite the rise of airline Web sites. 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 to the Air Transport Association, the industry's trade group.

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