Qantas to Reduce Agent Base Commissions

Sydney, 05 December 2005

Qantas said today that it would change travel agent base commissions for tickets sold in Australia from 1 April 2006.

Qantas Head of Sales and Marketing Rob Gurney said that under the new base commission structure:

* Australian domestic, trans-Tasman and New Zealand domestic base commissions, currently one per cent, would be discontinued; and

* International base commissions would be reduced from seven per cent to five per cent.

Mr Gurney said Qantas was operating in an extremely challenging environment with fierce competition domestically and internationally, as well as continuing high fuel costs.

"The reduction in commissions is in line with global trends and with Qantas' stated aim to reduce distribution costs.

"In some overseas markets, airlines have removed commissions entirely and travel agents have adjusted to new income models.

"Base commissions are only part of the income mix that travel agents receive from airlines and agents are increasingly moving to new remuneration models, including the collection of service fees where the customer pays the travel agent for the expert service they receive."

Travel agents are a key part of Qantas' distribution mix and Qantas will continue to consult closely with the Australian Federation of Travel Agents and to support the travel industry network, Mr Gurney said.

Issued by Qantas Corporate Communication (Q3364)