Air Canada Says Paying Agents Has Produced Results

Air Canada withdrew in great measure from the agency channel several years ago, but has taken steps during dire economic times to turn the page a bit.

On June 4, Air Canada introduced commissions for Canadian agents booking Tango flights within Canada, and the airline said the result was incremental gains in less than a month.

“I believe we definitely saw incremental traffic because of this move, “Air Canada Chief Commercial Officer Benjamin Smith told financial analysts Aug. 7. “Most of the smaller agencies were not booking with us. They haven’t been with us for a number of years, so this was a way to reengage with that part of the channel.”

The initial commission rate on Tango fares for was 4 percent, but Air Canada raised it to 7 percent on June 9. As part of its reengagement with the agency channel, Air Canada said it also entered into agreements with Expedia and two retail chains that the airline did not identify.

With its business in the doldrums, Air Canada turned to travel agents as one vehicle for enticing a rebound. Air Canada reported an operating loss of $113 million in the second quarter.