Commissions withdrawn in Malaysia by Malaysian Airlines

The airline stated that its airfares through all distribution channels in Malaysia remain the same. It added that customers will also continue to enjoy greater price transparency as the airfare, fuel surcharge, taxes and other surcharges will be printed on their tickets. Agency commission is still payable for Malaysia Airlines tickets issued on full-published IATA international and domestic fares.

With this new development, travel agents in Malaysia need to collect service fees to sustain viable business operations. MATTA members now have a menu of service fees based on the market conditions applicable for various types of services not normally provided by the airlines, like extending credit facilities, visa processing and travel document deliveries.

Service fees by travel agents who provide more travel related services to customers will naturally differ from those who provide lesser services. The final purchase price payable by customers will depend on actual level of services rendered by agents.

This is the best move by Malaysian Airlines and certainly this will bring in more transparency in the working of an agent who should get paid based on his services. This should be followed by all airlines in India.

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