Rex joins the commission cutters - but!!!!!!!!!
Rex today announced that they were reducing base commission across the board to 1%, but interestingly will still pay "buying groups" who provide them with significant revenue with an at source sweetener that makes them more than viable to us on the coal face.
The commission we are left with at the end of the day is such that I see no need (and this was obviously a point of difference that Rex wished to pursue) to charge a fee for service. I am happy with the percentage, and can make a living at that level where many are charging on everything. They are already starting to shed traffic.
QF on the other hand has forced fee for service on domestic, Trans Tasman and other routes. I can live with the 9 down to 7% plus overide on longhaul.
Take this, and United (went to 7, now back to 9 and making fuel surcharges commissionable) and other non Oneworld carriers sticking to their previous rates, the game is indeed afoot Watson!
We guys and girls at the pointy end have some degree of control of where the traffic goes, and with DJ paying performing agents rather well, JQ cutting big brothers throat with easily sold remuneration to us leaches things are not as ugly as they looked.
Maybe I am my worst enemy. After a previous post, the airlines I mentioned as alternate sells - ie: LA AA CX BA and even SA who operate code share for or on QF suddenly came back to 7%. FJ was already under the thumb on 5%.
Haven't checked Pixie, as seldom use the plate.
Well done Wokka, Jed, Matty and Geoff at Rex. It is nice to see there is some support for those who try to reciprocate.
It's still gonna be a bumpy ride.
Best all
EWL