GOL reduces costs of ticket distribution channel
8 December 2006GOL Linhas Aereas Inteligentes, Brazil’s low-cost, low-fare airline, has announced that beginning January 1, 2007, commissions paid to travel agents on GOL ticket sales will be reduced to 7 percent for domestic flights and 6 percent for international flights.
The decision is part of the GOL’s overall cost reduction plan which is expected to reduce operating costs. The Company also expects annual cost savings of R$95-105 million in travel agency commissions in 2007. “‘Reducing our costs will allow the Company to offer even lower airfares and continue to popularize air transportation,'” says GOL’s Vice-president of Marketing and Services, Tarcisio Gargioni.
source: Yahoo! Finance
