The recent decision by American Airlines to extend the deadline for travel agencies to reach preferred status with the airline has been welcomed by ASTA. Initially, nonpreferred agencies’ bookings were set to no longer be awarded AAdvantage points starting May 1st. However, American Airlines has now extended this deadline to July 11th, providing agencies with more time to meet the requirements.
In addition to the extension for AAdvantage points, American Airlines has also extended the deadline for agencies to achieve a 30% threshold of New Distribution Capability (NDC) bookings from April 21st to June 5th. Hitting this threshold is a key condition for becoming a preferred agency. ASTA president and CEO Zane Kerby expressed his satisfaction with this development, stating that it gives agencies and advisors more time to prepare for the upcoming changes.
ASTA has been engaged in a public dispute with American Airlines ever since the airline launched its new distribution strategy last April. This strategy involved removing fares from systems using legacy technology in an effort to push agencies to use NDC connections. ASTA has consistently raised concerns about the shortcomings in American’s NDC bookings and has even requested the Department of Transportation to intervene and require fares to be reinstated in legacy systems.
Zane Kerby pointed out that American Airlines may now be acknowledging the challenges it faced with its NDC technology, noting that the implementation deadlines were both arbitrary and unrealistic. This admission comes as a positive step towards addressing the issues raised by ASTA and other industry stakeholders.
American Airlines, on the other hand, has highlighted the positive response from agencies, with many already achieving preferred retailer status. The airline mentioned that several agencies are on the verge of becoming preferred as well. This progress indicates a growing acceptance and adaptation to the new distribution strategy implemented by American Airlines.
The decision by American Airlines to extend the deadline for preferred status and NDC bookings is a positive development for travel agencies. It allows for more time to adjust and meet the requirements set forth by the airline. While there have been challenges and disagreements along the way, the recent developments signal a step towards greater cooperation and understanding between American Airlines and the travel agency industry.