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October 8, 1999
Press Release from American Express Corporate Services

American Airlines Matches Commission Reduction

Today, October 8, 1999, American Airlines announced that it has matched the travel agency commission cut that United Airlines imposed on October 7, 1999.

Travel Agency commissions will drop from 8 percent to 5 percent for all domestic and international tickets purchased in the United States and Canada, effective October 9, 1999, at 12:01 a.m. central daylight time.

Domestic
All American Airlines tickets purchased in the United States for domestic travel (including Puerto Rico, Washington DC, and the US Virgin Islands) will earn a 5 percent base commission rate, with a maximum payment of $50 for round trip travel or $25 for one way travel.

Canada
The Canada base commission program pays a base rate of 5 percent, with a maximum payment of $70 CAD for round trip travel or $35 CAD for one way travel.

International
The international base commission program also pays a base rate of 5 percent, with a maximum payment of $100 US or $140 CAD for round trip travel and $50 UD or $70 CAD for one way travel.

The actions taken by American and United equate to a price increase for their business travel customers.

It remains unclear whether other carriers will follow American and United. American Express is beginning to analyze the impact of this cut and is preparing for possible moves by other airlines. We will keep you apprised of any new developments.

Please contact your American Express representative with any immediate questions or concerns.

October 8, 1999

Press Release from Rosenbluth International

American Airlines Announces Commission Cuts

American Airlines has announced that effective midnight tonite, they will decrease travel agent commissions to 5 percent base for all transactions, both domestic and international. For domestic travel, there will be a maximum 50 USD cap imposed on roundtrip tickets and 25 USD cap on one way tickets. For international travel, there will be a maximum 100USD cap on round trip tickets and 50 USD cap imposed on one way tickets.

Rosenbluth International will conduct impact assessments for clients affected by American Airlines' commission restructuring. Rosenbluth International anticipates that other airlines will continue to follow this trend in further reducing commissions. We will continue to monitor this development and keep you informed of all situations impacting travel.

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