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May 30, 2022 View:

American Airlines starts selling wine

After the outbreak hit the global airline industry hard, many flights stopped serving alcoholic beverages to prevent the spread of the new crown on board, which led to a lot of wine left on the airlines. To absorb the inventory, American Airlines now wants to sell the wine directly to consumers to enjoy at home.

Image courtesy of: Wine Business Watch

American Airlines Launches Flagship Wine Cellar

Spend and get bonus miles

According to CNN: On January 21, American Airlines launched a new program called American Airlines Signature Wine Cellar, where consumers will have the opportunity to get wine by ordering.

It is reported that American Airlines single bottle of wine prices in the range of $ 13-40, the most expensive price of $ 300 3 bottles of champagne. These wines are used in the first class of American Airlines intercontinental flights.

Customers can also purchase an AAdvantage wine subscription for $99 per month, which not only gets them three bottles of wine per month, but also two complimentary miles for every dollar spent.

According to the news, the accumulation of AAdvantage miles will allow customers to enjoy upgrades, hotel stays, car rentals and more.

Some wines have a slight price advantage

WBO also accessed the information on the official website of American Airlines. According to its official website information description: These wines are selected by a team of wine experts and 2000 are chosen each year, all of which are award-winning and can represent the unique styles of different regions of the world.

Following the directions on its website, WBO went to the American Airlines flagship wine cellar shopping site, which has wine packages in various price ranges. One package for $49.99 includes a bottle of American Sonoma red wine, a bottle of Douro red wine, and a bottle of California red wine.

The site shows this Sebastiani brand Pinot Noir 2016 vintage from Sonoma at a unit price of $16.99 per bottle, while the same wine is also available on the Wine Finder engine for a minimum price of $16.99 per bottle before tax; another LAVRADORES DE FEITORIA brand MERUGE red wine from the Douro region of Portugal, which is priced at $20.99/bottle at American Airlines" flagship wine cellar. The wine search engine shows the same wine at $23.59/bottle before tax, while another red wine, The Crusher Cabernet Sauvignon from the California region, is not available on the wine finder and is priced at $15.99/bottle in American Airlines' flagship cellar.

American Airlines' flagship cellar wines are also priced before tax, and free shipping is available with the purchase of 12 bottles.

The price of a single bottle of the three wines mentioned above is basically lower or equal to the price of the wine search engine, and discounts are also available for purchasing packages, giving a slight price advantage. Shopping via the Internet during the epidemic is also in line with people's consumption habits.

However, by checking, WBO found that not every wine sold by American Airlines is at the lowest price either.

Hopes to bring in $40-50,000 in sales in the first quarter by selling wine

Aircraft were grounded due to a significant reduction in international travel as a result of the outbreak. According to the latest earnings report released by American Airlines, the company posted a net loss of $3.6 billion. However, wine sales are not expected to have much of a positive impact on its losses.

A spokeswoman for American Airlines quoted Alison Taylor, the company's chief customer officer, as saying in an email that the company hopes the new wine program will generate $40,000 to $50,000 in sales in the first three months of 2021.

However, short-term revenue from the sale of wine is not the only consideration for the airline.

While revenue is important, the flagship cellar is more of a way to engage with customers, even if they can't currently travel with us, and the move gives them an idea of what they can enjoy by flying American Airlines. A spokesperson said.