American Continues to Invest in Products to Enhance the Customer Experience
FORT WORTH, Texas, Jan. 19, 2011 /PRNewswire/ — American Airlines, Inc., a wholly-owned subsidiary of AMR Corp., today announced it has entered into a purchase agreement with the Boeing Company under which American will acquire two Boeing 777-300ERs to support its global network strategy and to capitalize on international growth opportunities. The two aircraft are expected to be delivered in late 2012.
“These additional widebody aircraft will bolster our network strategy, particularly the international growth opportunities we expect from our joint businesses with oneworld® partners in the trans-Atlantic and trans-Pacific markets,” said Tom Horton, President, AMR Corp., the parent company of American Airlines and American Eagle. “We value the combination of size, range and performance of the 777-300ER, as well as the extensive customer amenities it offers. The seating capability of the aircraft will give us growth flexibility in slot-constrained airports and provide us with greater ability to serve new long-haul markets.”
“American Airlines is an industry leader whose vision and disciplined approach to growth has made it one of the largest airlines in the world,” said Boeing Commercial Airplanes President and CEO Jim Albaugh. “American is the first carrier in the United States to order the 777-300ER. These new airplanes will complement their large fleet of 777-200ERs by offering additional flexibility in serving nonstop routes while providing increased efficiency and reliability.”
Additional terms of the commitment were not disclosed.
“We hope that this positive step for our airline signals the beginning of a period of domestic and global expansion which will allow our airline to aggressively compete and prosper in the years to come,” said Captain David Bates, President of the Allied Pilots Association, the union that represents American’s 8,600 pilots.
From 2007 through 2010, American has invested $4.2 billion in aircraft, cabin, and facility improvements to enhance the customer experience.
International Growth Opportunities
The 777-300ERS will expand international service, either incremental frequencies in markets American serves today, or new routes largely resulting from its alliance initiatives.
As part of their recently launched trans-Atlantic business, oneworld members American, British Airways and Iberia announced service on five additional international routes, beginning in spring 2011. They are: New York JFK-Budapest and Chicago-Helsinki (operated by American Airlines), London Heathrow-San Diego (operated by British Airways), plus Madrid-Los Angeles and Barcelona-Miami (operated by Iberia). Also in spring 2011, American will add additional frequencies from New York JFK to Barcelona and Miami to Madrid.
On Jan. 11, American Airlines and Japan Airlines announced the launch of their trans-Pacific joint business. Customers can expect to benefit from better flight schedules, expanded codesharing, more coordinated services, and greater access to a wider variety of fares. Additional consumer benefits over the coming months are anticipated as the cooperation level deepens between the two airlines. Additionally, American plans to start its new nonstop daily service between New York’s John F. Kennedy International Airport and Tokyo’s Haneda International Airport next month, and to launch service from Los Angeles to Shanghai, China, in April. Japan Airlines began service from Haneda to San Francisco in late October. The carriers have already begun, or plan, to codeshare on these flights.
The trans-Atlantic joint business opportunity, initially representing approximately $7 billion in combined revenue between the carriers, will offer seamless service to 430 destinations in 105 countries, with nearly 5,200 daily departures worldwide. The trans-Pacific joint business, which represents more than $1.5 billion in combined revenue between the two airlines, represents significant growth opportunities for American long term as the Pacific region currently accounts for only about 4 percent of American’s total system capacity.
American also continued to grow its service in Latin America in 2010. Last year, it began service from New York’s JFK to San Jose, Costa Rica, and to Rio de Janeiro, Brazil; Dallas/Fort Worth to San Salvador, El Salvador and Rio de Janeiro, Brazil. It also began service from Miami to Brazil’s capital, Brasilia. American is Latin America and Mexico’s premier airline with 43 destinations to 17 countries.
“We believe it is important to grow but to do so sensibly, in the right places and, importantly, under the right economic circumstances,” Horton said. “Our purchase of additional 777s, our first growth aircraft since 2001, further demonstrates that philosophy and we will continue to look for growth opportunities that make the most sense for our customers, shareholders and employees.”
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