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American Airlines Provides 3-Year Cushion to Frequent-Flier Customers

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From Bloomberg News

AMR Corp., parent of American Airlines, said frequent-flier miles will no longer expire if customers at the world’s No. 2 carrier take part in the program once every three years.

Members must fly on American or one of its frequent-flier partners, or use other services related to the AAdvantage mileage program. Under the guidelines, miles already in members’ accounts will be extended through Dec. 31, 2002. Starting Jan. 1, 2000, the date on which a member uses the program starts the new three-year term.

The move could prompt UAL Corp.’s United Airlines, which takes miles away from customers if they aren’t used in a certain period, to also make the change. In 1981, American was the first airline to offer frequent-flier miles through its AAdvantage program. It now has about 35 million accounts.

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“This will prove attractive to people deciding which program they’re going to join,” said Henry Joyner, a marketing vice president at Fort Worth-based AMR.

Chicago-based United, the world’s largest airline, said it was studying American’s move.

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