Hong Kong travel agencies have decided to stop selling tickets for Emirates Airlines for a week from Tuesday after the airline announced to slash its commission to travel agents from seven to five percent.

The Travel Industry Council of Hong Kong, which decided to stage the boycott Friday, will meet again next month to decide if they will take further action.

The commission cut will be effective as of Tuesday.

The airline's vice president Edwin Lau Wing-chu said they are not the first one to make such a move and that many other airlines have reduced or even canceled commissions to travel agents so as to remain competitive amid rising fuel costs.

But the council said it is "a rare practice".

Council chairman Ronnie Ho revealed that they had previously vented their anger over the airline's decision, but their efforts proved to be futile.

"The airline replied that the cut was a decision made by its headquarters in Dubai, and the Hong Kong office could not do anything about it," he said.

Executive director of the council Joseph Tung revealed that other airlines had considered following the airline's move, but decided against it after discussing with the council.

Emirates in Hong Kong mainly operates routes to Middle East, Europe and Bangkok.

Ho said travel agencies can easily choose other airlines for these routes.

In response, Lau reiterated that the airline is determined to maintain close relationship and rapport with the trade and hence the advance notice about the commission cut.

"It is rather unfortunate that the Travel Industry Council has decided to disassociate from Emirates," he said.

Lau added the airline will have no choice but to raise airfares should oil prices continue to surge.

Meanwhile, Consumer Council chief executive Connie Lau expressed concern over the boycott, but indicated that they have not received any complaints from customers so far.

Lau added that Emirates tickets can still be purchased through the Internet.

(HK Edition 06/28/2008 page1)