US embassy cable - 05BOGOTA10204

UNCLAS BOGOTA 010204 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAIR, CO 
SUBJECT:  Colombian Civil Aviation Response to Demarche on 
Travel Agent Commissions 
 
REF: STATE 196362 
 
1.  During an October 26 meeting with the Colombian Civil 
Aviation Authority (CAA) Director General Fernando 
Sanclemente, DCM raised USG concerns regarding mandatory 
travel agent fees for airline ticketing.  Sanclemente said 
he will be meeting with travel agency representatives next 
month, but due to the fact that travel agent commissions are 
a contentious issue, it would be very difficult to eliminate 
them.  Sanclemente noted this was a neuralgic issue and that 
the travel agents and airlines had irreconcilable positions. 
He also criticized previous attempts to manage this issue. 
 
2.  Sanclemente said he was seeking presidential approval to 
reduce commissions over the next two years to between two 
and three percent from eight percent now. 
 
3.  Sanclemente noted part of his proposal would mandate the 
decreased commissions be passed to the public as lower 
fares.  He explained this would be an integral part of the 
proposal. 
 
4.  Sanclemente said he expects his proposal to be approved 
in November.  Given the public benefit of reduced 
commissions, DCM applauded the efforts being made by the CAA 
in this area.  DCM further suggested that Sanclemente garner 
support for CAA's work on the issue by going public with a 
firm position to lower commissions explaining that this 
would lead to lower prices for consumers. 
 
5.  DCM has discussed these developments with an American 
Airlines official who has been in contact with the embassy. 
 
Wood