Travel Jun. 01, 2008 - 06:27PM JST ( 1 )

TOKYO —

Northwest Airlines will abolish on Oct 1 fees paid to travel agencies for air tickets issued in Japan as part of its efforts to cut costs amid soaring fuel prices and growing competition.

Northwest will be the first airline to scrap such fees in Japan. The U.S. airline currently pays 5% of airfares as ticketing fees to travel agencies. Japan Airlines and All Nippon Airways, both major Japanese carriers, set their fee rates at 5%.

American Airlines, United Airlines and Continental Airlines are slated to lower their fee rates to 3% from 5% July 1.

The move by Northwest may prompt other airlines to scrap ticketing fees as well given the company’s major business presence in Japan. The number of takeoff and landing slots Northwest has at Narita International Airport near Tokyo is the third highest after JAL and ANA.

JCN