Emirates’ agent deals under scrutiny

FIRST Comair and now Emirates
– airlines’ override commission
agreements with travel agents have
come under scrutiny lately and are
being thoroughly investigated by the
South African Competition Commission.
A complaint has been lodged with
the Competition Commission claiming
that the override deals Emirates
offers travel agents are unfair. A
spokesperson for Emirates says it
offers travel agents a growth-based
commission structure. “The airline
takes compliance with competition
law very seriously and, as such, it will
co-operate fully with the Commission’s
investigation,” the spokesperson said.
For years, the Competition
Commission tied SAA’s hands whenit came to its loyalty override
agreements with travel
agents, as SAA was seen
as a dominant player in the
market. Only at the beginning
of this year, the airline
received permission from
the Commission to review its
override agreements towards a
growth-based incentive model
as opposed to a volume-based
incentive model.
Last month, SAA lodged a
claim with the Competition
Commission questioning the
payment of incentives by
Comair to travel agents (see
TNW June 17).
Now the Competition
Commission has allegedly
received information from a
member of the public regarding
some aspect of Emirates’
operations. “The Commission
appears to have initiated a
complaint against Emirates.
As part of their investigation,
the Commission has contacted
various airlines, including SAA
and travel agents, requesting
industry information,”
spokesperson for SAA, Tlali
Tlali, told TNW.