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Delta to Be First Airline to Cap Agent Commissions : Travel: Carrier will pay a maximum of $50 on domestic tickets. Agencies say move hits them hard.

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TIMES STAFF WRITER

Delta Air Lines, in a move to cut costs at the expense of the nation’s travel agents, said Thursday that it will immediately cap commissions paid to agents for writing domestic tickets.

The nation’s third-largest carrier is the first major U.S. airline to abandon the conventional 10% commission paid to agents for booking tickets. Atlanta-based Delta, like most big airlines, relies on agents to ticket roughly eight of every 10 passengers.

The news hit ticket agents like a bombshell, and some suggested the industry might try to charge the public “transaction fees” to make up the difference.

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“I’m flabbergasted,” said Jim Roberts, president of Uniglobe Regency Travel in Ontario. “This is going to be a significant (financial) hit for us.”

Jeanne Epping, chairman of the American Society of Travel Agents, said in a statement that she was “shocked and outraged” by the change, which she warned would “hurt the bottom-line profitability of ASTA members across the country.”

The plan calls for Delta to pay a maximum $50 commission for a round-trip domestic ticket with a base fare of more than $500, and $25 for a one-way ticket with a base fare in excess of $250. The cap will kick in on about 20% of the tickets written by agents, the airline estimated.

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The agents would hurt even more if Delta’s maneuver were to spread. The biggest U.S. airline, United, declined comment on whether it is pondering such a move.

Delta is trying to shed $2 billion in annual operating costs by mid-1997 to generate sustained profits.

Last fall Delta also cut agents’ commissions on its international flights to 8% from 10%.

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