BrokenCustomer Service
Robert Isom, CEO: “American's new direct distribution strategy through NDC will benefit customers with the best fares and loyalty rewards a...”
American · January 25, 2024 · Q4 2023 Earnings Call
The Promise
“American's new direct distribution strategy through NDC will benefit customers with the best fares and loyalty rewards available only through preferred channels.”
Robert Isom, CEO · January 25, 2024 · Q4 2023 Earnings Call · Source
Target
Metric: Revenue impact of NDC strategy
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What Actually Happened
Verdict:Broken
The NDC strategy was a disaster. American pulled 40% of its lowest fares from traditional booking channels, slashed agency sales staff, and canceled corporate incentive contracts. ASTA called it 'a clear abuse of market power.' The strategy cost American an estimated $1.5 billion in lost revenue in 2024 as corporate clients booked elsewhere. Isom reversed course in May 2024, restoring GDS content and AAdvantage points for non-NDC bookings.
Actual result: $1.5 billion in lost revenue; strategy reversed
Source: Travel Weekly, Cranky Flier, ASTA (checked Oct 2024)
Timeline
January 25, 2024
Promise made by Robert Isom, CEO via Q4 2023 Earnings Call
October 2024
Evidence checked — Broken
More from American
Robert Isom, CEO · Oct 2024
American will introduce new Flagship Suite business-class seats on Boeing 787-9 and Airbus A321XLR aircraft, open a new Flagship Lounge at Philadelphia, and retrofit the entire fleet with high-speed Wi-Fi by end of 2025.
Robert Isom, CEO · Oct 2024
American will add 40 to 50 new aircraft in 2025 and recover Chicago O'Hare hub to pre-pandemic service levels by reintroducing regional jets.
Robert Isom, CEO · Jul 2024
We are winning back corporate business that moved away during our distribution changes. The team is delivering on our commitments.
Robert Isom, CEO · May 2024
We must do more to enhance NDC instead of removing content from GDS. American will restore full fare content and loyalty rewards to all booking channels.
Robert Isom, CEO · Jan 2023
American Airlines will reduce total debt by $15 billion from peak levels by the end of 2025.
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