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Swiss International Air Lines to move to 0% Commission in 2005

Travel News Asia 8 August 2003

Swiss International Air Lines (SWISS) has announced it is to maintain its basic commission rate for Swiss travel agents at 7 per cent and will not introduce a 0 per cent commission rate until January 1, 2005.

Since the beginning of this year, SWISS has been conducting intensive talks with travel agency representatives on the future commission policy. The decisive factors in the examination of the currently valid 7 per cent basic commission model were the present economic situation at SWISS and also the pressure of many European airlines to cut travel agency commission payments in their home markets.

Against the background of the difficult economic environment, which also affects the travel branch, SWISS has decided to introduce the 0 per cent commission model in the year 2005, thus giving the agencies adequate time to prepare for this new form of collaboration.

New fare structure

In Autumn this year, SWISS is to introduce a completely new product and fare concept for European destinations, offering simpler, cheaper and more flexible fares. Based on the new competitive fares and a transparent commission policy, SWISS said it looks forward to the continuation of the partnership with Swiss travel agencies.

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