Lufthansa Eliminates U.S., Canadian Base Commissions

Lufthansa German Airlines today eliminated base commissions paid to U.S. and Canadian travel agencies, following the industrywide trend sparked by Delta Air Lines in March (BTN, March 26). Thus far, other major international carriers have not matched most major U.S. carriers in completely cutting base commissions in North America.

"We will take a close look at commissions, but we are not in the same position as U.S. carriers," said Christopher Korenke, Air France vice president and general manager in the United States, speaking last week with Business Travel News.

However, several international carriers in their home markets either fundamentally altered agency compensation programs or are preparing to do so, including British Airways, Singapore Airlines, KLM Royal Dutch Airlines and others. Lufthansa already had announced and postponed until January its elimination of traditional agency commissions in Germany. However, it already has begun the transition by developing new agency payment programs.