This gives them an unfair advantage, since they can afford to have customers book directly with them by telephone or over the Internet without charging a fee. But Mr. Simeone says he is not attacking Air Canada in lobbying to give more teeth to the proposed legislation. It's a terrific airline. I'm proud to support Air Canada. I just believe that we need to be able to work with them on a fair and equal basis.
Travel agents receive two kinds of commission.
Mr. Rosenberg says Air Canada has been forced to follow the lead of other airlines around the world in reducing base commissions, though it has always tried to implement the changes as sensitively as possible by giving travel agents advance notice. Now that Air Canada is the dominant player in the domestic market, it is being forced to change the way it offers override commissions. Until now, these commissions have been based on how much of their business agencies give to each airline. But this does not make sense for domestic travel bookings now that only one major airline offers scheduled flights. Mr. Rosenberg says Air Canada is putting together new concepts of commissions to conform with proposed federal legislation, which will likely outlaw traditional overrides in order to prevent a monopoly carrier from cutting deals that exclude any potential competitor.