October 20, 1999
Press Release from American Express Corporate Services

Nine Major Domestic Airlines Have Now Cut Commissions

America West Airlines, Air Canada, and Alaska Airlines are among the latest carriers to announce a reduction in the travel agency base commission from 8 percent to 5 percent for all domestic and international tickets purchased in the United States and Canada.

To date (Tuesday October 19), nine major domestic carriers have taken this action:

America West
Alaska
TWA
US Airways
Continental
Northwest
Delta
American
United

Additional domestic airlines that have taken this action include:

Midwest Express
Air Trans Air
Horizon Air

Foreign carriers that have reduced the commission rate include:

Air Canada
KLM Royal Dutch
Grupo Taca

In addition to the cut in the commission rate, the maximum commission paid remains capped at $50 ($70 CAD) per domestic round trip and $100 ($140 CAD) per international round trip. (Precise details for specific carriers may vary.)

American Express is analyzing the impact of this cut. We will keep you apprised of any new developments.

Industry news may also be accessed through our web site at:
www.americanexpress.com/corporateservices/news

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