AMR corporation Bankrupt

After reading After American Airlines Bankruptcy, Your Frequent Flyer Miles May Be Worth Less article from Frobes.com, I was informed about customers becoming worried about losing their frequent flyer miles. AMR corporation filed for Chapter 11 on November 28, 2011 causing several worries towards the corporation. This article is focused on customers receiving their frequent flyer miles even though the corporation is declared bankrupt. In class we covered customer satisfaction, prestige, and contingency planning.

AMR Corporation sent out an email to all the customers that had frequent flyer miles and assured every customer that they will receive the full benefit. As a corporation, it would have been an outrage towards the customers if their flyer miles were all of a sudden erased. AMR is taking a lose in profit by continuing to allow flyer miles towards their customers but it is totally worth every penny. The reason for their decision is based on satisfying the customer and in this case the ability to use their accumulated flyer miles.

AMR Corporation owns American Airlines and American Eagle. Both of these airlines have a reputation to being one of the best airlines. Given the prestige, credit card companies offer their customers flyer miles towards AMR Corporation if the customer uses their credit card to buy expenses. Flyer miles are accumulated by every certain amount of money a credit card customer uses.

AMR Corporation had a contingency plan if they were ever to go into bankruptcy and for that reason, AMR Corporation is still able to accept flyer miles to their clients. Their profits are reduced but their customers are hopefully loyal. In class we discussed the importance of creating a contingency plan for multiple scenarios and AMR looks to have a strong contingency plan by covering their customers frequent flyer miles.

AMR Corportation is on its way toward recovery and trying to retain their customers. Their customer satisfaction , prestige and contingency planning will help them bounce back. Time can only tell whether they are fully able to recover their loses.


http://www.forbes.com/sites/deborahljacobs/2011/12/02/after-american-airlines-bankruptcy-your-frequent-flyer-miles-may-be-worth-less/