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American Airlines revises AAdvantage Business Program with new perks

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American Airlines revises AAdvantage Business Program with new perks
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Gary Leff Chief Financial Officer | View from the Wing

American Airlines has made significant changes to its AAdvantage Business program, a move following the departure of Chief Commercial Officer Vasu Raja. Raja had previously led a strategy aimed at reducing managed business travel by not offering discounts to companies, asserting that filling planes without these discounts would be more profitable and cost-effective.

The airline also had strained relations with travel agencies by limiting support and pulling the lowest fares from agencies that did not use American's preferred booking technology. Furthermore, it announced plans to prevent customers who booked through certain agencies from earning miles.

In an apparent shift in strategy, American Airlines is now reintroducing commissions for travel agencies selling premium fares and attempting to revive some of their business travel initiatives. They have reversed the decision to end mileage-earning for agency tickets after realizing insufficient business was being conducted through 'New Distribution Capability' systems, which were often unreliable.

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The airline is also reinstating some service features in its small business program. The former Business ExtrAA program has been replaced by AAdvantage Business, which initially saw a two-thirds to three-quarters devaluation. Points could only be earned for bookings made directly with American Airlines, excluding agency bookings, and customer service support was minimal.

Key updates to the AAdvantage Business program include:

- Earning points regardless of where tickets are booked, with no exclusion for agency bookings.

- Accessing customer service via phone from 7 a.m. to 7 p.m. CT, Monday through Friday at 877-229-8278.

However, challenges remain such as the inability to apply AAdvantage Business details for booking multiple passengers and requiring an AAdvantage Citi co-brand business card for full earnings in the program.

Despite these issues, there are positive aspects including earning a bonus loyalty point per dollar spent on tickets credited to the program. Future enhancements will add flexibility:

- Redeeming miles directly from AAdvantage Business without transferring them first.

- Managing trip credits for businesses and redeeming them for any registered traveler.

- Customizing travel policies by traveler or team.

- Transferring tickets between travelers with name change waivers available for all members.

While these improvements are beneficial, they do not fully restore the value once offered by Business ExtrAA.

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