Continental Airlines released a series of cost-cutting and
revenue-generating measures last week that include additional
penalties and fees for travel agents, according to a report from
Travel Management Daily.
The airline told retailers it would issue a $25 administrative
debit memo for any U.S. taxes and fees reported incorrectly. Also,
any debit memo issued that is not a late fee or administrative in
nature would include a $25 service fee to cover “the increasing
costs of ensuring accurate booking and ticketing,” the airline
said. The airline didn’t explain what flat fee or administrative in
nature means.
The carrier also doubled its paper-ticket fee to $20 for
domestic flights and made it applicable to all distribution
channels, including agents. It said travel agents will be hit with
a $50 administrative debit memo if they do not correctly follow
Continental’s instructions on how to assess the paper-ticket
fee.
The airline also had bad news for low-fare customers, who
Continental said would have to start paying for some services they
now get free. An airline spokesman said Continental cannot legally
disclose which fees will be charged, but said to look for new
charges to be revealed during the next several weeks. Passengers
paying higher fares will continue to receive the “full-service
product” free, the line said.
The carrier also said it is cutting its domestic mainline jet
capacity in August by 17%, compared with August 2001, and said it
will ground an additional 11 MD-80 aircraft by the end of 2003.
