AA's Looks to its future in Asia

[700UW]

From another web page:
 
American Airlines' triple play in greater China is part of long-haul rejuvenation, with more to come
http://centreforaviation.com/analysi...uvenation-with-more-to-come-172304http://centreforaviation.com/analys...ng-haul-rejuvenation-with-more-to-come-172304

 

CAPA is out with a longish article including interview with Erwan Perhirin VP Asia-Pacific looking at AA's aspirations in the Asia/Pacific region.

As we've discussed prior, the carrier is only now growing into the region decades behind fellow U.S competitors, but believes such growth is important and must offer customers an online option when flying across the Pacific by filling in a big geographic hole in order to be a true global US airline.

Some highlights of the story and comments:

o Long eyed DFW-China links, but cost base, labor conditions, aircraft type and product made sustainable flights questionable. DFW-PEK was considered as far back as 2006.
o Looking at broader Asia/Pacific opportunities - seek to add network value to customers and keep them from flying competitors.
o Australia/NZ possible - but no immediate plans as QF JV built on basis AA not serving such routes.
o Asia to date has been loss making, but viewed as investment for long term
o New scale and cost base combined with a refreshed fleet believed to be the recipe to bring profits.
o HKG important as it gives customers another Asian connection point beyond NRT. JAL codeshares limited and often at price premium.
o While DFW not best geography for Asia, US South, Southeast and LatAm are target connection markets
o Reluctance of US gov't to offer transit visas hurt U.S carriers compete for flow between Asia-LatAm
o Will grow CX codeshares without hurting JAL JV. Though CX pushed for more restrictions on mileage earning for economy fares.
o Hainan is a "tactical" partner on select routes. Like BA would like a Chinese partner, but nothing imminent.
o Even with 20-hour ground times, plan no intra-Asia tags
o New fleet of 787 and A350s will allow AA to evaluate routes that it could not offer in the past
o Could go after another HKG route. Station staffing is more than needed for 1x daily. First however must work to build HKG point of sales.
o Ultimately reality is balancing strategic vision with financials. While optimistic need to do it profitably.

 
 

 

 

[MetalMover]

From another web page:
 
American Airlines' triple play in greater China is part of long-haul rejuvenation, with more to come
http://centreforaviation.com/analysi...uvenation-with-more-to-come-172304http://centreforaviation.com/analys...ng-haul-rejuvenation-with-more-to-come-172304
 
 

Of course this all depends on whether or not DL will allow it!