ASTA on Thursday spoke out against American Airlines and its upcoming restriction on travel agency bookings that won’t earn AAdvantage points if the agency doesn’t qualify as preferred.
ASTA addressed panelists from the Consumer Financial Protection Bureau and Department of Transportation. The Society has also lodged a complaint with the Federal Trade Commission about American.
Starting July 11, only bookings from travel agencies that have reached preferred status with the airline will earn AAdvantage points. That deadline was extended from an original date of May 1.
To become preferred, 30% of an agency’s AA bookings must be New Distribution Capability (NDC) bookings.
During the panel, ASTA CEO Zane Kerby and vice president of advocacy Jessie Klement spoke.
“Emboldened by no competitive, consumer or regulatory response, American Airlines decided that customers booking through most travel agencies won’t receive rewards miles for their flights,” Kerby said.
Kerby also directly told DOT Secretary Pete Buttigieg that ASTA had filed a formal complaint with his department last fall. That complaint is pending.
In a letter to FTC chair Lina Khan, submitted Thursday, ASTA takes issue with the agreement agencies sign to be named a preferred agency with American.
ASTA called it “egregiously one-sided.”
“Among other things, it permits American to terminate the agency’s preferred status for any reason, or no reason at all, on 30 days’ notice,” ASTA said. “Practically speaking, the inclusion of this clause means that regardless of an agency’s achievement of the prescribed NDC booking thresholds on the measurement dates (or any other dates AA may arbitrarily choose to use instead), preferred status can be revoked at will at any time.”