Malaysia Airlines offered double commission for Australian Travel Agents
JUST over a month since flight MH17 was shot down over Ukraine, the struggling Malaysia Airlines has offered to almost double the commission Australian travel agents earn from selling seats on its planes.
Agents have been advised that for the next month, all Malaysia Airlines tickets issued in Australia will be commissionable at 11 per cent in all cabin classes for travel originating in Australia.
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It means an agent could earn more than $600 for a return business class fare from Sydney to London, via Kuala Lumpur, or about $200 for a return economy fare.
The new figure is almost double the previous six per cent commission level which will continue to apply to tickets issued for travel originating outside Australia.
Commissions will revert to the normal rate after September 15.
Haydn Long from Flight Centre said it was not unusual for airlines to up commissions to stimulate travel on certain routes.
“You would have to assume Malaysia Airlines is trying to reinvigorate interest in its flights out of Australia, in the wake of those two terrible tragedies (the missing MH370 and MH17),” said Mr Long.
“Certainly bookings with Malaysia Airlines have been affected by these tragedies.”
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The future of the airline has been in question in the wake of the loss of 298 lives on MH17, and the apparent deaths of 239 people on flight MH370 which disappeared in March.
It was announced last week that majority shareholder Khazanah Nasional would purchase all minority shares and finalise a restructuring plan by the end of this month.
In the last three years, the airline has lost $1.37 billion and is continuing to amass losses of an estimated $1 to 2 million a day.
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Mohini Porwal [ B Sc]
Trainee News Editor