American Airlines recently announced that they have extended the deadline for travel agencies to achieve preferred status with the airline. This decision comes as a relief to many nonpreferred agencies who were at risk of losing AAdvantage points for bookings starting on May 1. The new deadline for agencies to reach the preferred status has been moved to July 11, giving them more time to meet the requirements set by the airline.
In addition to extending the preferred status deadline, American Airlines has also pushed back the deadline for agencies to achieve a 30% threshold of New Distribution Capability (NDC) bookings from April 21 to June 5. This threshold is a crucial requirement for becoming a preferred agency with American Airlines. The extension of this deadline provides agencies with more time to adapt to the new distribution strategy implemented by the airline.
The American Society of Travel Advisors (ASTA) has expressed their satisfaction with American Airlines’ decision to postpone the deadline for preferred status. In a statement, ASTA president and CEO Zane Kerby mentioned that while the fundamentals of American’s preferred travel agency program remain unchanged, the postponement of the program is good news for the travel industry. This extension allows agencies and advisors more time to prepare for the upcoming changes.
ASTA has been in a public dispute with American Airlines since the airline introduced its new distribution strategy in April of last year. The strategy involved removing fares from systems that used legacy technology and encouraged agencies to adopt NDC connections. ASTA has raised concerns about the servicing shortcomings of American’s NDC bookings and has requested the Department of Transportation to intervene and reinstate fares in legacy systems.
American Airlines has acknowledged the concerns raised by ASTA and admitted that their NDC technology was not fully developed. The airline also recognized that the implementation deadlines were unrealistic and arbitrary. Despite these challenges, American Airlines has seen a positive response from agencies, with many already achieving preferred retailer status. The airline stated that additional agencies are close to becoming preferred as well.
The extension of the preferred status deadline by American Airlines has been met with approval from ASTA and provides a much-needed relief for travel agencies and advisors. The additional time granted to meet the requirements for preferred status will allow agencies to better prepare for the changes brought about by the new distribution strategy implemented by the airline.