WHAT THE EC TOLD BA…
The European Commission laid out seven principles on agents’ commission which BA agreed to abide by:
Commissions offered to different agents must reflect variations in the cost of distribution through different agents or variations in the value of the services provided to BA by different agents in the distribution of its tickets.
Commissions increase at a rate which reflects savings in BA’s distribution costs or an increase in the value of services provided by the agent to BA in the distribution of its tickets.
Commissions must relate to sales made by the agent in a period not exceeding six months.
Commissions must not have targets that are expressed by reference to the sales made by the agent in a preceding period.
Commissions must increase on a straight line basis above any base line stated in the agreement.
The commission paid on any ticket must not include any increase in the commissions paid on all other BA tickets issued by the agent.
Agents are free to sell tickets of any other airline and the goods or services supplied by any third party.
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