US carrier American Airlines may still be under Chapter 11 bankruptcy protection but this has not stopped it from continuing with its network growth with new services to be introduced next year in the domestic market and to destinations in Asia, Europe and Latin America. With growing rumours that the carrier is also on the verge of unveiling a new corporate livery, it looks like a new dawn for the US giant.
Next year, American will begin services from Dallas/Fort Worth to Seoul Incheon, South Korea and Lima, Peru; from Chicago O'Hare to Dusseldorf, Germany; and from New York JFK to Dublin, Ireland. These new services will enhance American's network footprint and will provide more access and choices for customers in key international markets. These will be supported by new domestic services from its Dallas/Fort Worth and Chicago hubs, bringing new connectivity options.
Despite the tough trading conditions and the financial instability that led to its bankruptcy protection, it has been a strong year to date for American, particularly in foreign markets. In the past weeks it has revealed healthy revenue growth across a number of markets as passenger loads grow and yields strengthen.
According to the carrier, in the first nine months of 2012 international unit revenue increased 8.0 per cent for the driven by increased load factors across all entities and improved yield performance. In the Pacific unit revenue was up 13.3 per cent for the same period due to increased demand in the premium cabins, greater revenues from Asia point-of-sale and joint selling efforts with its joint business partner, Japan Airlines (JAL). Elsewhere, American says its Latin American operations witnessed a 7.2 per cent unit revenue increase, while network growth and the coordinated selling efforts of its joint business partners British Airways and Iberia over the Atlantic, helped drive a 6.5 per cent increase in Transatlantic revenues versus the same period in 2011.
The strengthening of American's global network is just another example of the company's progress to a new business structure, which includes focusing on its hubs in the most important domestic and international cities and enhancing relationships with alliance partners.
"We continue to strengthen American's service from our hub markets to enhance our international offerings and better meet customer demand," said Virasb Vahidi, Chief Commercial Officer, American Airlines. "Nearly one-third of Fortune 500 companies are located in our five hub cities, and these new routes will provide more convenient access for our business travelers to key international destinations."
From its largest hub at Dallas/Fort Worth International, American will launch its first-ever service to Seoul Incheon from May 9, 2013. The daily service will be operated using a Boeing 777 as a part of American's joint business agreement with JAL. The route is already flown by Korean Air but American will be able to provide more convenient connection opportunities to the long-haul route at Dallas/Fort Worth than Korean Air receives from its SkyTeam partner Delta Air Lines. An estimated 68,000 O&D passengers travelled between Dallas/Fort Worth International and Seoul Incheon last year.
The introduction of a daily link from Dallas/Fort Worth International to the Peruvian capital will further enhance American’s hub activity at the Texas gateway. This route will be launched from April 2, 2013 and will be flown using a Boeing 757. This marks the return of the US carrier to a route it last served in early 2006 and will bring the airline closer to its oneworld partner LAN Airlines in the Latin American market. American actually provides more service than any other airline between North America and Latin America with more than 900 weekly flights to 49 destinations.
Another route being relaunched by American is between Chicago O’Hare and Dusseldorf. This was last flown back in 1995 and will place the carrier in direct competition with its Star Alliance rival Lufthansa. The German flag carrier has been serving this market since the late 1980s and currently offers an up to daily service using an Airbus A340-300 in partnership with United Airlines. In 2011 an estimated 59,000 O&D passengers flew on the route, up 44.1 per cent with strong transit feed options also available in Europe and the US markets.
American will launch its own daily flight on April 11, 2013 and will use a 767-300ER on the link under a codeshare arrangement with airberlin, which will provide potential feed to cities such as Moscow, Tel Aviv, and Nice through airberlin's extensive network. This route will also operate as part of the joint business agreement with British Airways and Iberia.
Further transatlantic expansion will bring a new daily service from New York JFK to the Irish capital Dublin. This flight will be launched from June 12, 2013 and will be flown with a 757-200, again in conjunction with American's Atlantic joint business partners, British Airways and Iberia. Aer Lingus and Delta Air Lines already provide direct services on this route, while United Airlines links Dublin to Newark Liberty International. In 2011, an estimated 340,000 O&D passengers flew between Dublin and New York JFK, with a further 83,000 flying between the Irish capital and Newark.
The new international routes will be supported by new domestic hub connections in the US. From February 14, 2013 American will add flights through its regional affiliates American Eagle and ExpressJet, from Dallas/Fort Worth to Beaumont/Port Arthur, Texas, Columbia, Mo., and Fargo, N.D, as well as adding a new Chicago O'Hare – Columbia, Mo. service.
Related Content
