Battle of commissions

ANOTHER legal headache is all that cargo airlines need now, as a number of big carriers continue to expend huge amounts of time and money in defending their corner in the rate fixing probe.

Yet for many GSAs the issue of commission payments on fuel and war surcharges, is something that has become their own 'line in the sand.' FAGSA in particular has taken a very militant stance, threatening legal action against the carriers and claiming that the surcharges are now no longer short-term fixes for extraordinary circumstances, but an established part of the charges to customers and therefore commissionable for sales agents. The airlines have not budged.

Many cargo managers have stated that any GSA that tries to take an airline to court is crazy. No airline would ever touch them again. Indeed, a number of GSAs recognise the danger and have withdrawn from the harsh accusations and threats that were commonplace six months ago. But the issue is still not resolved.

Forwarders in Italy have joined the fray but commencing their own legal action to force payment of surcharges. If ever there was a need for a strong air cargo association or body to bring the warring parties together and thrash out a solution, it is on this issue.

So what should be the solution? Should airlines admit that surcharges will never go away and now a new form of commission structure for GSAs should be established? Should the status quo be maintained with room for negotiation on each deal between agent and airline? Or should FAGSA and others push ahead with their legal cases to finally get what they claim they need to survive?