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Both online and offline agencies faced the July 11 deadline, when users who purchased American Airlines tickets on certain booking sites would no longer be able to earn AAdvantage miles.
But American Airlines CEO Robert Isom said Wednesday that the airline had abandoned that idea. This is a global setback from the U. S. direct reserves strategy, as the country faces weak reserves and a gloomier monetary outlook.
“Next month, we were going to differentiate between those who earned AAdvantage miles and those who didn’t, based on where they booked. This is false,” Isom told investors and analysts at a Bernstein conference. “We’re not doing this because it would create confusion and disruption for our end customer, and we’re going to make sure we’re careful about that. We pay attention to feedback.
The plan was that the airline would designate “preferred agencies,” which would be required to electronically book at least 30% of their flights through American’s new distribution capability, and that consumers of those online and offline agencies could continue to earn AAdvantage. miles when purchasing tickets on those third-party sites.
Travel agencies that didn’t get the airline’s approval risked wasting many consumers who would have had to book e-flights in the U. S. U. S. Citizen Services in AA. com or through a compatible agency.
First, the airline announced that it would designate the desired agencies until May 1, then extended that deadline to July 11.
Many agencies didn’t know if they would be successful.
Zane Kerby, president and CEO of the American Society of Travel Advisors, had fought against the airline’s distribution policies and applauded the airline’s U-turn.
“I am grateful for the renewed popularity of American Airlines for the critical role advisors play in facilitating air travel for our mutual customers,” said Kerby. “I need to thank American Airlines CEO Robert Isom for acknowledging that his past technique was wrong. Reversing Resolution Denying AAdvantage and mileage issues for agency bookings is a testament to the strong position agencies hold in the airlines’ distribution channel.
Kerby welcomes the opportunity to work with American Airlines on a “responsible implementation of its NDC program. “
When the news broke, ASTA coincided with its annual national convention in Dallas, on the lawn of the airline’s Fort Worth headquarters.
However, American has definitively abandoned direct distribution.
“We’re learning and adapting,” Isom said. We know that NDC, the modern retailer, delivers a greater experience to the end consumer. And we know we’ll get there over time, but we want to do it differently. We’re going to make it easier, we’re going to do better, and we’re going to do a lot more to test and bring other people with us.
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Tags: aadvantage, American Airlines, amast, businessArray distribution, loyalty, ndc, new distribution capability, online newsletter, consistent with diem
Photo credit: The tail of an American Airlines plane. Airbus / Airbus
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