American Airlines: Customers accepting of no-show fee for cargo

American Airlines’ customers have been understanding about its decision to adopt a no-shown fee for cargo that is not delivered as expected.

The carrier’s recently appointed president of cargo, Jessica Tyler, told Air Cargo News that the no-show fee had been introduced earlier this year as cargo capacity had become constrained.

The surcharge, part of a fair booking policy, meant that customers with shipments over 100kg pay a fee, starting at $50, for a late cancellation, late reduction in chargeable weight or failure to show.

Tyler said that there were several conversations in the American Airlines team around putting in place the cargo no-show fee, regarding a possible concerted backlash from the industry, which in the end did not come, although in some cases flexibility was shown.

“We have to change the behaviour in this industry especially at a time when capacity is precious, so we have to get the right things to the right place at the right time in a crisis, and a no-show fee helps that process,” she said.

“Our customers understand the preciousness of that space, so at a time like this we felt that it was the right thing to do, and it wasn’t about revenue because I am more focused on changing behaviour in this industry and coming into the 21st century.”

The no-show fee also meant that vital products such as pharmaceuticals were able to move quickly, helped by American Airlines’ product for time and temperature-sensitive goods, which is now in the process of acquiring IATA’s CEIV pharma at the carrier’s Dallas, Miami and Philadelphia hubs — the latter being its flagship facility for pharma where there is a cluster of life science companies.

“We have a really good three-way relationship with shippers, forwarders and ourselves, working together to make sure we can take care of these precious materials,” says Tyler.

“We are seeing an uptick in some of the newer, individual-specific medicines where you take genetic material from the patient and make it into a medication.

“Those are a one-of-a-kind medical treatments and if you mess up the logistics then you’re messing with someone’s life and well-being.”

This story is an extract of a wider interview with Tyler that will appear in the next edition of Air Cargo News. Sign up for free to make sure you receive your monthly copy.

Share this story

Related Topics

Latest airlines news

Air Cargo News Awards finalists revealed!

Air Cargo News is delighted to reveal the finalists for this year’s Air Cargo News Awards. The team of 10…

Read More

Share this story

Swiss WorldCargo is recertified for IATA CEIV Pharma

Swiss WorldCargo has once again been re-awarded with IATA’s CEIV Pharma (Center of Excellence for Independent Validators in Pharmaceutical Logistics)…

Read More

Share this story

Silk Way Airlines flies whales to Spain

Silk Way Airlines has flown two beluga whales from Moldova to Spain as part of efforts to relocate the animals…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.