THE Legislature has no authority to limit the business activities of the two major airlines that removed the base commission of travel agencies selling their tickets, according to Rep. Frank DLG. Aldan, chairman of the House Committee on Tourism.
But Aldan, R-Saipan, also assured travel agents that he would recommend to Northwest Airlines and Continental Airlines to continue their sales ticket activities at Saipan International Airport.
“We are also concerned about the effect that the elimination of the 5 percent commission will have on our local travel agencies and on our local economy,” Aldan told travel agencies.
“Although we cannot legally ‘limit’ their business activities, we can recommend that Continental and Northwest Airlines continue their ticket sales activities solely from the airport,” he added.
He said the travel agencies’ move to impose a 5 percent service charge to cushion the impact of the loss of their base commission enjoys the support of the House.
However, the lawmaker did not specifically mention any concrete action that would help travel agencies.
The travel agencies sought the assistance of the government after the airlines cut their base commission.
According to the agencies, they are contributing over $1.3 million in business gross receipt taxes each year.
