Spanish national carrier Iberia Airlines is aiming to end commission payments by 2007, its sales director Javier Alonso said.
A spokesman for the carrier said: “We have been reducing the commission we pay gradually and next year it will stand at 1%. The target is nil commission which we are aiming at for 2007.” Before the cuts started, Iberia, a member of the Oneworld alliance, paid agents 6%.
He said the reductions had been negotiated with several of the associations representing Spanish agents.
Iberia's move will bring it into line with other major airlines like Oneworld partner BA.
Spokesmen for the major Spanish association GEBTA Espana were unavailable for comment.
Lufthansa dispute deepens
The pay dispute between Lufthansa and its pilots' union Vereinigung Cockpit (VC) is deepening.
The carrier's chief executive Wolfgang Mayrhuber has apparently threatened to transfer Lufthansa services to a low cost subsidiary but the union has threatened “open conflict” if that happens.
Mr Mayrhuber has talked of possibly moving five Boeing 737s to partners within the Star Alliance but it has ruled out reports that it might shift these aircraft to its Italian subsidiary Air Dolomiti.
The VC says this outsourcing is contrary to pay agreements signed in the 1990s.
The dispute is over Lufthansa's aim to cut 104m in personnel costs this year. So far, it has achieved only about half this target.
Mr Mayrhuber's stated aim is to make Lufhansa's short haul operation more competitive in the face of the rise of the no frills carriers. He has said the dispute is delaying this.
He is due to meet with VC representatives next week.