Air Malta says fierce competition forces rock-bottom commission for agents

National airline Air Malta expressing disappointment at a judicial protest filed against it by the Federation of Federated Association of Travel and Tourism Agents (FATTA), over a decision to reduce commission to 0.1% for travel agents in Malta.

FATTA is calling on the airline to reconsider its decision, saying that commission on Air MAlta bookings has decreased from 9% in 2001 to 1%, and as from tomorrow, 0.1%. "This decision could put travel agents in a difficult position, considering whether or not to keep on providing such a service."

In its statement, Air Malta said it was "particularly surprised" since it had offered to delay the change in commission levels by three months to 1 November 2013 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.

Air Malta said it would not make any further comment until it has had an opportunity to consider the judicial protest, which has not as yet been served on Air Malta.