American Changes Ticket System
American Airlines unveiled a program to make its lowest Web fares available to conventional travel agents both as a way to sell more seats and eventually cut its ticket-distribution costs.
The AMR Corp. unit said cheap fares previously limited to American’s Internet site, and to selected Web sites such as Orbitz Inc., would now be available to agencies that sign up for the five-year EveryFare program.
In turn, the agents would potentially shoulder some of the booking fees that American now pays third-party reservations systems, such as Sabre Holdings Corp., used by the agents. The agents might eventually be able to book directly through American’s Web site, which also would drive down American’s distribution costs.
The program is the latest effort by American to slash more than $1 billion from its annual operating expenses to survive the slump in travel and stem its massive financial losses.
The move also is meant to satisfy corporate travel managers who complained that they didn’t have access to American’s cheapest prices at a time when passengers--especially business travelers--are increasingly looking for lower fares in the face of the weak economy.
Separately, American said it raised $617 million from selling bonds secured by its aircraft. AMR’s stock, which had been hammered in recent days, rebounded 60 cents, or 17%, to $4.20 a share on the New York Stock Exchange.
