AMR, AOL Link Rewards Programs

AMR Corp.’s American Airlines and America Online Inc. will combine their frequent-flier and rewards programs under a multibillion-dollar, three-year agreement. Under the program, called AOL AAdvantage, customers will be able to earn points by booking reservations with American or its hotel, restaurant and rental car company partners or by buying goods online via AOL or its Netscape, CompuServe or Digital City units. A joint management team from both companies will run the program, which may begin as soon as May 1.

Separately, AOL said it will buy a minority stake in Netcentives Inc., a marketing company that runs incentive programs for online retailers. Netcentives will provide the infrastructure for AOL AAdvantage. San Francisco-based Netcentives said AOL will buy less than 5% of its stock for an undisclosed price. The news sent Netcentives shares surging $6.38 to close at $68.25 on Nasdaq.

Fort Worth-based AMR closed off 6 cents at $53.81 and Dulles, Va.-based America Online fell $1.94 to close at $56.94, both on the New York Stock Exchange.