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Virgin reviews commission stance
Virgin Atlantic is expected to follow rival British Airways and axe commission for US agents from next year.
The airline has vowed to keep its 5% uncapped commission for US agents until the end of the year but has warned that the position is being evaluated.
The airline’s senior vice president for North America William King said the situation had to be reviewed now that rival British Airways had gone to zero commission.
Agents book about 85% of Virgin’s North America business, but King said the fate of commissions would depend on what happens with agent bookings for the rest of the year.
“We would love to see a market share shift so we don’t have to change anything,” said King.
But if Virgin does not see an increase in its trade bookings following rivals’ decisions to axe commissions, it will need to remain cost competitive, said King.
British Airways eliminated base pay and standard fees for US agents on October 1.
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