Frontier Airlines (Nasdaq: FRNT ) today announced it will implement a new travel agency commission structure, effective 12:01 a.m. on Nov. 5, 1999. Tickets issued by non-online travel agencies will earn a five percent base commission, with no maximum commission cap. The new rate structure applies to all tickets issued on Frontier, including miscellaneous charge orders (MCOs) and prepaid ticket advices (PTAs). Additionally, any tickets issued by online travel agencies based in the U.S. (including Puerto Rico and the U.S Virgin Islands), Canada and Mexico will earn a base commission rate of five percent.
The airline`s action follows the lead of most major U.S. airlines, which recently implemented the new structure. “We value the contributions of the travel agent community,” said Frontier Vice President of Marketing Jeff Potter. “But we also recognize that in order to succeed, Frontier must remain competitive with other airlines from a cost standpoint.”