American Airlines launches reassurance drive after bankruptcy
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American Airlines has launched a campaign to try and reassure customers that their bookings and loyalty programme perks are safe despite filing for bankruptcy to buy time to reorganise its finances.
The carrier expects to continue flying as normal and has emailed concerned customers to tell them that their flights and frequent flyer miles will remain intact.
Tom Horton, chief executive of parent company AMR, posted a video message on the airline’s website alongside information on the implications of filing for bankruptcy.
American hopes applying for “Chapter 11” protection will give it time to cut high staffing costs in line with domestic rivals United Airlines and Delta Air Lines, which have both used Chapter 11 to cut costs before entering into merger agreements.
The bankruptcy comes less than a month after American launched its first brand campaign for two years. The ads, starring Kevin Spacey, focused on its customer service and first class options.
YouGov Insight:
Travel Insurance
· In terms of underwriter premiums, Axa is acknowledged in the market as the largest travel underwriter (around 23% of premiums) followed some way back by Aviva and RBS (both around 12%).
· According to YouGov SixthSense research, in August 2010, 34% of adults with annual travel insurance had packaged bank accounts (virtually all of which come with annual travel cover), while only 6% of those with single trip cover owned such accounts.
· UK consumers are more likely to switch from single to annual travel insurance coverage as 1 in 5 people who cancel their single travel insurance policy already hold an annual policy.
· 75% of UK adults who quit a travel insurance policy do not have another travel insurance policy lined up.
· Two thirds of YouGov respondents who claim to have cancelled an annual travel insurance policy in the past did so during the recession.
