will be cut in the near future.

Responding to the news that United Airlines and USAir on Monday joined Delta, Northwest and American airlines in a cap on travel agents' commissions in the continental US, Mr. Gary Kent-Smith, president of the Bermuda Travel Agents' Association, said: "we have a fear that if this move in the US is successful it could be expanded to include international flights in and out of Bermuda.'' The five airlines have said they will cap commissions at $50 on US domestic round trip tickets and $25 on US-domestic one-way tickets.

Prior to the cap, travel agents received an average 10 percent commission for ticket sales.

Delta recently moved to cut this rate to eight percent for US domestic flights.

"Technically we come under the Western Hemisphere category and are not impacted by Monday's announcement, we have not been informed they (International tickets which would include Bermuda-US and US-Bermuda) are next,...if it's successful we feel it will be expanded,'' Mr. Kent-Smith added.

"We have not been advised that international flights are involved. We suspect they may try and test this in the US first,'' said Mr. Nat Chambers, with the travel division of LP Gutteridge.

Local airline representatives are not privy to information that international ticket sales will be included in future and could not comment on future moves by their respective carriers.

Ms Jackie Zuill, local manager of Delta Airlines, said the commission cap affects between US, including Hawaii and Alaska, Puerto Rico and the US Virgin Islands while Ms Carole DeCouto, general manager of American Airlines (Bermuda), said she was awaiting more details of the recent announcement and how, if at all, it applies to Bermuda.

But several representatives agreed that flying from Bermuda to a gateway then on to another US location, like from Bermuda to New York then on to Los Angeles, are also not impacted at this time.

That flight is considered an international flight, according to Mr. Buddy Franklin, owner of Franklin Travel.

If the cap spreads to Bermuda's 16 travel agencies, Mr. Kent-Smith said the association had discussed options but preferred not to disclose what they were at this time.

In the US, small and medium-sized travel agent businessescfear they will be squeezed out of operation by a cap. -- See story, Page 12 .

Local agents said that if the airlines were to extend the cap to international flights it would make it "difficult'' for Bermuda's travel agent businesses.

"Margins would be closer obviously, businesses "would have to work harder to generate business, businesses may try to find ways to substitute for the loss by offering special packages and incentives for non-air products like cruises and hotel accommodations,'' he said.