US major American Airlines may be under Chapter 11 bankruptcy protection, but this will not stop its expansion in Latin America and in particular the fast-growing Brazilian market. In the past week the US major has outlined its plan to restore its position in the airline business, return to profitability and to develop in the years ahead as it attempts to generate around $3 billion in annual improvements by 2017, including $2 billion in cost savings and $1 billion in revenue enhancements.
The planned reduction of its workforce by 13,000 staff has grabbed the headlines, but it is a revised network strategy that has also proved interesting. American says it will focus on the five key markets in its network - Dallas/Fort Worth, Chicago, Miami, Los Angeles and New York – where it will increase departures by around 20 per cent over the next five years through its own growth and alliance partners. One part of this will be the growth of international services, particularly to key growth markets such as Brazil.
The carrier has confirmed that will increase frequencies between Dallas/Fort Worth International and Sao Paulo from June 2012 as well as introducing its brand new Boeing 777-300ERs on the route from the end of the year. Growth in other Brazilian markets has also been outlined including the introduction of flights to Manaus.
American currently offers a daily link between Dallas and Sao Paulo but this will increase to 12 flights per week from June 14, 2012. The new 777-300ERs will come online from December 2012 and will enable the carrier to offer a more competitive product to passengers travelling between USA and Brazil with a state-of-the-art onboard product, including Wi-Fi capability.
The airline will also introduce flights to Manaus, its seventh destination in Brazil. The four times weekly connection from Miami International will be inaugurated in June and will be operated using a two-class, 160-seat 737-800 providing space for 16 Business Class and 144 Economy passengers. American has already filed with the US Department of Transportation for authority to upgrade this route to a daily schedule in the future.
Alongside the new route, June 14, 2012 will also mark the expansion on other developing routes in Brazil. American will increase the frequency of its flights from Miami International to Brasilia and Belo Horizonte to a daily schedule. These two routes are currently served five and three times per week, respectively.
"We recognise the opportunity of the Latin American market and our increased network announcements, along with the deployment of the 777-300ER, emphasizes American's dedication to the region," said Virasb Vahidi, Chief Commercial Officer, American Airlines. "We are devoted to our global network strategy and plan to continue capitalising on international opportunities like those announced today to strengthen our network and provide great customer service."
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