New American Airlines Discount Structure Puts More Business Under Contract

American Airlines today revised domestic discount structures for all corporate contracts. The move addresses a competitive weakness versus Delta and United by giving accounts a price break on more airfares. AA said every client with an existing deal immediately will realize greater savings, with more spending covered by contractual terms.

Discounts now apply on all published pricing, including the lowest economy and "instant-upgrade" fares. Some other fare types moved to higher tiers within AA's contract framework, meaning larger discounts are applied to them. No fare types went into lower tiers.

"The bottom-line impact is an aggregated discount . . .

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Author: David Jonas

David Jonas in 2006 co-founded business media firm ProMedia.travel after ten years as a journalist with Business Travel News. David rejoined BTN in 2010 as executive editor when its parent company acquired ProMedia, and in 2014 co-created The Company Dime. David has a bachelor's degree in communications from Cornell University.