All the news about Israeli tourism

Air Canada recently requested the cancellation of the 7 percent basic commission. Educational Travel has learned that they were forced to retract this following clarification from the travel agents that legal steps would be taken on the issue.

Air Canada flies 4-5 flights a week on the Toronto to Tel Aviv route and is looking to introduce a new business model on the basis of cancelling the basic commission that they pay to travel agents on the sale of tickets. But they were forced to do a U-turn after threats of action against them by Israeli travel agents.

Ruth Ben-Tzur, general manager of Air Canada in Israel, held meetings with senior representatives from among the travel agents.

Air Canada is the first airline from outside Europe, flying to Israel, that is looking to introduce a new business model.  In the last few months, as a result of the economic recession and the slowdown in worldwide passenger traffic and to Israel in particular, it is reported that the company is in economic difficulties and is looking to reduce its activities.

If they decide to cancel basic commission then they will join with Lufthansa, Swiss International Airlines, British Airways, Alitalia, Air France and KLM.  The first three of that group are currently being sued by the Israel Tourist and Travel Agents Association (ITTAA) in the high court.

Air Canada in Israel reported that they did not know about any meetings on this issue. “Like all airlines, we remain in contact with all of our distribution channel and travel agents are at the top of that list.”  When asked whether they had asked for zero commission, the company replied that it was not used to disclosing commercial matters.

The Travel Agents Association declined to comment.