Colombian Civil Aviation Response to Demarche on

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