The Dominican Travel Agency Association (ADAVIT) and the Dominican Tour Operators Association protested the decision of American Airlines to reduce travel agents’ commission on the sale of American Airlines and American Eagle airline tickets. The airline reduced the commission from 10 to 6%, or a 40% decline. Raul Fiallo, director of AA in the DR, said the commissions were reduced due to increases in aviation fuel. The measure is effective 15 January on all pre-paid round trip tickets sold in the Caribbean, with the exception of Bermuda and the Bahamas. ADAVIT said the reduction is illegal because the Civil Aviation Board regulates the commission. ADAVIT said that the reduction in the commission is a "death sentence" to the travel agencies, most small businesses that operate on very low profit margins. Máximo Vásquez, president of ADAVIT says that in the DR, American Airlines depends on the about 500 travel agencies that sell AA tickets in the DR. He said that AA only maintains offices at Las Americas International Airport and in Santo Domingo. Travel agents are estimated to handle 85% of the tickets sold by the AA and American Eagle in the Dominican Republic. Furthermore, he said that the Civil Aviation Board Resolution 96 of 1 June 1998, based on Law 505, regulates the commission on tickets in the DR. ADAVIT has scheduled at meeting for today to continue to discuss the AA decision. Armando Cuello, vice president of the Dominican Association of Tour Operators (Adotur) said the measure could put 90% of travel agencies out of business. (11 January 2000)
