Fuel surcharge commission dispute close to resolution

ALAN PEAT A TRUCE is being called in the battle over commissions on fuel and security surcharges for general sales agents (GSAs) from air cargo carriers. The issue has become highly sensitive since the launch of investigations by competition authorities in Europe, the US and Asia in February into alleged surcharge price-fixing – and International Freighting Weekly reports that the authorities are also investigating some airlines forming an agreement not to pay surcharges to agents. But an out-of-court settlement could be under way – with carriers getting a final chance to settle privately with agents. Geneva-based representative body, the Federation of Airline GSAs (Fagsa), has been attempting for more than two years to get airlines to reward agents for collecting fuel and security surcharges, which have been a part of overall air freight rates. But the organisation is favouring a solution within the industry. General secretary Glenn Shires told IFW that Fagsa was preparing to send a team, including legal counsel, “to organise a favourable settlement” from carriers on behalf of its members.