Malaysia Airlines has announced it will reduce base BSP commission from four to two per cent from 1 July 2022.
The airline said the decision was necessary to remain competitive in a tough post-pandemic market.
Malaysia Airlines regional manager, Giles Gilbert, said he is regretful that these tough decisions have to be made.
“Malaysia Airlines has always highly valued the trade support it receives, and this decision is a very difficult one for us,” he said.
“Whilst we would prefer to retain commission at its present level, as an airline we operate on wafer-thin margins, and we compete against other airlines that are highly competitive.
“Unfortunately we had no option but to review our commission structure.”
Gilbert said the airline will continue to provide its trade partners and consultants the best possible local service through its Malaysia Airlines Sky is the Limit incentive schemes, as well as locally based agency support teams.
“We are committed to providing our trade partners local support and competitive fares and promotions.
“Our trade relationships are vitally important to us, with over 85 per cent of all agency partners receiving more than base BSP commission via incentive arrangements.”
Base BSP commission will reduce from four to two per cent effective 1 July 2022 for all Malaysia Airlines 232 issued tickets issued in Australia or New Zealand, and originating in Australia or New Zealand, on all fares types and fare basis.
All other tickets originating outside of Australia and New Zealand, and domestic Malaysia tickets, will continue to receive zero commission.
