AAdvantage

AAdvantage is the frequent flyer program of American Airlines. Launched May 1, 1981, it was the second such loyalty program in the world (after the first at Texas International Airlines in 1979), and remains the largest with more than 67 million members as of October 2011.

Miles accumulated in the program allow members to redeem tickets, upgrade service class, or obtain free or discounted car rentals, hotel stays, merchandise, or other products and services through partners. The most active members, based on the amount and price of travel booked, are designated AAdvantage Gold, AAdvantage Platinum, AAdvantage Platinum Pro, and AAdvantage Executive Platinum elite members, with privileges such as separate check-in, priority upgrade and standby processing, or free upgrades. They also receive similar privileges from AA's partner airlines, particularly those in oneworld. AAdvantage co-branded credit cards are also available and offer other benefits. These cards are issued by CitiCards, subsidiary of Citigroup in the United States, by MBNA in the United Kingdom and by Butterfield Bank and Scotiabank in the Caribbean.

AAdvantage allows one-way redemption, starting at 5,000 miles.

Increased competition following the 1978 Airline Deregulation Act prompted airline marketing professionals to develop ways to reward repeat customers and build brand loyalty. The first idea at American, a special "loyalty fare", was modified and expanded to offer free first class tickets and upgrades to first class for companions, or discounted coach tickets. Membership was seeded by searching AA's SABRE computer reservations system for recurring phone numbers. The 130,000 most frequent flyers, plus an additional 60,000 members of AA's Admirals Club were pre-enrolled and sent letters with their new account numbers. The name was selected by AA's advertising agency, and is consistent with other American Airlines programs featuring "AA" in the name and logo. The logo was designed by Massimo Vignelli.

Less than a week later, rival United Airlines launched its MileagePlus program; other airlines followed in the ensuing months and years. The rapid appearance of competition changed the nature of the program, and as airlines began to compete on the features of their frequent flyer programs, AAdvantage liberalized its rules, established partnerships with hotel and rental car agencies, and offered promotions such as extra free beverages. In 1982 AAdvantage also became the first program to cooperate with an international carrier; members could accrue and redeem miles on British Airways flights to Europe.

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