United Airlines Will Eliminate Commissions to Save Money

United Airlines has informed it expects to save an additional US$100 million a year in distribution costs by 2007 through cutting agent commissions in other countries and reducing GDS payments.

The commission cuts alone will reduce the financially-troubled company´s costs by US$17 million this year and US$50 million annually by 2007, COO Pete McDonald said in a message to employees.

He also said United expects to save US$9 million this year through use of Orbitz direct-connect bookings, which bypass GDSs and their fees and instead link directly with the airline’s reservations system.