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Commissions |
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Page last updated: 24, May 2006
Welcome to the American Airlines Travel Agency web pages. This page details American Airlines Commissions
Policy. Please use
the links below to navigate to the subject of your choice. You can use the mini-menu on the right to return
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Thank you for your continued support.
| Change commission rate for UK/Ireland
| Offshore commission policy |
| Automated Commission Tables
| Local Base Commissions |
Change commission rate for UK/Ireland
Update February 2005
Effective 01 May 2005, all tickets issued in the UK will
earn a base commission of 0 percent, including tickets for itineraries
that originate in the U.S. and Canada which also earn 0 percent base
commission. See letter below.
Ireland
Effective 01/05/03 all tickets issued in Ireland will earn
a base commission of 1%, except tickets for itineraries
that originate in the U.S. and Canada which earn 0% base
commission.
Commission rates for UK Travel Agents
Effective 01 May 2005, all tickets issued in the UK will
earn a base commission of 0 percent.
Herewith follows the text of the letter communicating this update to UK Travel Agents:
Re: American Airlines Announces Change in Travel Agent
Remuneration in the United Kingdom
Dear Agency Partner,
Please be advised that American Airlines, Inc. will eliminate its
one percent (1%) travel agency base commission and replace it with
a ticket issuance fee system effective 1 May 2005. From that date,
tickets settled through the BSP in the United Kingdom will earn
zero percent (0%) base commission. The travel agency will be
remunerated through a mark-up of American's net fare or other
ticket issuance fee determined by the agent and paid by the customer.
Accordingly, we hereby give notice of the foregoing changes to
the manner and amount of your remuneration pursuant to Paragraph
9 (Remuneration) of IATA Resolution 824-Passenger Sales Agency
Agreement (the "Agreement") with respect to your agency locations
in the United Kingdom, effective 1 May 2005. In lieu of the
previous base commission paid by American, your agency will
be compensated for all services it provides to American in
connection with the Agreement by retaining any ticket price
increase, over the net price required by and payable to American,
that your agency charges to customers, or by any other ticket
issuance fee that you choose to charge to customers. You must
disclose to the customer, in a clear and unambiguous manner,
that any increase over the net price or any fee for issuing a
ticket is not part of the ticket price quoted by or to be paid
to American, but solely a reimbursement or fee for your services
provided to the customer.
Excluded from our agreement from 1 May 2005 forward are any
provisions of the IATA Travel Agent's Handbook, IATA resolutions or
local law which create, or are deemed to create, remuneration
obligations for American Airlines with respect to the arrangement
of air travel and related services provided by you, other than as
set forth in this letter. Accordingly, IATA Resolution 824, other
than such excluded provisions, shall continue to apply and govern
the relationship between American and your agency.
In order to accept these changes to the manner and amount of your
remuneration, please counter-sign the enclosed duplicate copy of
this letter and return it to us by no later than 30 March 2005.
In the event you do not return the signed letter by such date, we
will assume that you do not agree with the terms of this letter. This
letter will then serve as notice of termination of the existing
Agreement in accordance with its terms effective 30 April 2004
and after that date you will no longer be authorised to act as
our agent for sale of air transportation.
Please note that the elimination of base commissions may not be
implemented automatically in the CRS systems and, accordingly, it
is your responsibility to implement the necessary procedures to
avoid improperly taking a base commission.
If you have any questions regarding our new remuneration policy,
please do not hesitate to contact your American Airlines account
manager directly.
Yours sincerely,
Leslie Peden
Sales Director - UK & Ireland
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Offshore commission policy
Since Oct.1 2002, AA no longer pays a base commission
for tickets issued by travel agents located outside of the
United States (incl. Puerto Rico and the U.S. Virgin Islands)
and Canada, for flights on itineraries originating within the
territory of the United States (including Puerto Rico and
the U.S. Virgin Islands) and Canada.
This is an expansion of the policy change American
implemented March 18, 2002, when it announced it would no
longer pay a base commission to travel agents within the U.S.
(including Puerto Rico and U.S. Virgin Islands) and Canada.
The change applies to all tickets, miscellaneous charges
orders (MCO's), prepaid ticket advice (PTA's) and bookings
made via the Internet for travel originating within the
United States (including Puerto Rico and U.S. Virgin
Islands) and Canada.
VUSA (visit the U.S.A.) fares are exempt from this policy.
In the meantime, because American's base commission
and other commission structures can vary by country and
travel agent, American reiterates that travel agents may
not evade or circumvent American's commission rate
structures by means of shifting of bookings to a branch
office (e.g., via use of satellite ticket printer or
electronic transfer of ticketing data), through commission
splitting or referral arrangements with a correspondent
travel agency, or by any other means.
Due to legal restrictions the effective date for Germany,
Austria and the Netherlands is 01Feb03. The effective date
for Chile is 01Jan03.
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Automated Commission Tables
In an effort to support automated commission processing
when issuing a U.S. originating itinerary, American Airlines
will change the automated commission tables in your CRS with
effect from 1st February 2003. From this date the automated commission tables will be set
at the agency base commission rate for your country
- e.g. 1% for the U.K. - and 0% on all U.S. domestic
originating itineraries.
However, due to our commission policy on U.S originating
itineraries, some itineraries will have to be manually
adjusted at time of ticketing to claim the correct
commission.Manual adjustments will have to made on the following
itineraries:
| Itinerary |
Commission Rate |
Adjustment Required |
| U.S. Originating Domestic - VUSA Fares* |
Your country rate |
Change commission rate from 0% to your country rate |
*On Separate ticket from the international ticket.
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Local Base Commissions
For all local base commission rates, please go to Local Commission Rates.
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Information contained on this website is subject to change at any time without prior notice.
American Airlines shall not be liable for any consequences resulting from your reliance on the information.
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