American Airlines Reverses Course on NDC Implementation, Rewards Program
American Airlines is making changes to its NDC implementation and AAdvantage rewards program following the announcement that the company’s shares fell more than 13 percent this week. The rushed switch to NDC and only offering loyalty points when travelers book directly or through preferred travel agencies received strong pushback from the travel trade and are among the reasons why the airline underperformed financially this year. The slew of failed maneuvers have also led to the dismissal of Executive Vice President and Chief Commercial Officer Vasu Raja.
Following American Airlines’ announcement that it will be reversing course on the initiatives, Zane Kerby, president and CEO of the American Society of Travel Advisors (ASTA), said, “I’m grateful for American Airlines’ renewed recognition of the essential role that travel advisors play in facilitating air travel for our shared customers. I want to extend my thanks to American Airlines CEO Robert Isom for acknowledging its previous approach was flawed. Reversing the decision to withhold AAdvantage points and miles for agency bookings is a testament to the firm position that travel agencies hold in the airline distribution channel.”
ASTA previously called American Airlines “monopolistic” and said its “behavior should be concerning to regulators and lawmakers who value competition and consumer choice.”
Continuing his statement, Kerby said: “My gratitude for the ASTA Board of Directors has never been stronger. Because of their commitment to our efforts, we were able to activate thousands of travel advisors and their customers in an unprecedented grassroots effort. Thank you to everyone who stood behind us.
“I look forward to working with American Airlines on a responsible implementation of its NDC program, which includes its valuable partners in the travel advisor community.”
