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Wafer-thin margins: Malaysia Airlines to reduce commission from 1 July

Malaysia Airlines has announced today that it will reduce its base BSP commission from 4% to 2% per cent effective 1 July 2022, in a move it says is needed "to remain competitive in a tough post-pandemic market."

Malaysia Airlines has announced today that it will reduce its base BSP commission from 4% to 2% per cent effective 1 July 2022, in a move it says is needed “to remain competitive in a tough post-pandemic market.”

Malaysia Airlines Regional Manager ANZ, 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.

“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.”

Speaking about the impending cuts, he added, “unfortunately we had no option but to review our commission structure.”

Giles Gilbert, Malaysia Airlines Regional Manager ANZ

Gilbert says the airline will continue to provide its “valued 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% of all agency partners receiving more than base BSP commission via incentive arrangements.”

Base BSP commission will reduce from four (4%) to two (2%) 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 (0%) commission.

Malaysia Airlines joins a host of other airlines including Qantas, Emirates and Singapore Airlines in reducing and cutting out base commissions from 1 July 2022.

For more, head to www.malaysiaairlines.com/au