Lufthansa Beating Their Chest

Lufthansa’s latest announcement of a proposed 16 euro fee per booking for bookings made through intermediaries effective Sept 1st of this year came as a shock to the industry.  Lufthansa’s spin is that they want to cut down on distribution costs, and who doesn’t.  However, when you consider how small the distribution cost is to the airline in comparison to the cost of their services (tickets) it’s relatively small.

A source inside a major GDS confided to me that this was somewhat expected behavior as part of a negotiating ploy to lower (not eliminate) their GDS fees.  I’m somewhat confident Lufthansa’s current proposal will not come to reality.

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