WASHINGTON -- Ecuador's civil aviation authority rescinded a
government rule that, for more than 20 years, forbid airlines from
dropping agent commissions below 10%.
The rescission, effective June 1, should end a dispute with
American, which began paying 6% to agents in Latin America in
January in spite of the regulation. That dispute led to a two-week
suspension, beginning May 22, of some of American's flights to
Quito and Guayaquil.
"The authority is not going to be involved in this matter," said
Cesar Naranjo, general director of civil aviation in Quito.
Instead, he said, the authority decided commissions levels are an
issue "to leave to the free market."