Dive Brief:
- The C-suite executive overseeing unpopular changes to American Airlines’ loyalty program is departing the company, the carrier said in a regulatory filing Tuesday.
- Chief Commercial Officer Vasu Raja, who joined American Airlines in 2004, will depart next month. Stephen Johnson, vice chair and chief strategy officer, will lead the commercial organization and the search for a new CCO, the company said in an announcement.
- After delaying the change to its loyalty program in April, American announced Wednesday that it was scrapping a plan that would make it harder for customers to earn loyalty points and miles.
Dive Insight:
In February, American announced changes to its AAdvantage loyalty program requiring customers to buy their tickets directly through the American Airlines website, eligible partner airlines or from a list of preferred online travel agencies in order to earn points. The changes were meant to go into effect May 1.
The adjustment was intended to bring more ticket sales in-house and move the airline away from its dependency on travel agencies with which it shares a cut.
At the time, Raja said the changes would make travel planning more convenient for customers.
“We want to make it more convenient for customers to enjoy the value and magic of travel,” Raja said in a prepared statement in February. “Not only does booking directly with American provide the best possible experience, it's also where we offer the best fares and it's most rewarding for our AAdvantage members.”
But some customers were none too pleased. At the Bernstein Strategic Decisions Conference on Wednesday, CEO Robert Isom said American was listening to customers and would not implement the proposed changes.
“We’re not doing that because it would create confusion and disruption for our end customer, and we’re going to make sure that we take care of it,” Isom said. “We’re listening to feedback. We’re learning and adapting.”
