American Airlines looks to catch up to Delta and United in Asia. Capacity re-deployment from LatAm?

American Airlines, the world's largest airline, has accepted it is the smallest of the three US carriers in Asia. But American wants to move from being "a distant third player to a relevant player, and eventually a leader," American Airlines VP Asia-Pacific Erwan Perhirin tells CAPA. Over the last 18 months American has added routes to greater China it could not do so under its old cost base, employee contracts, fleet and product offering. American's focus now turns to further thickening its Asian presence, adding service to existing Asian points from other US hubs - such as Los Angeles.

American wants to narrow competitive gaps in its core Asian markets and gain a firm footing in Beijing and Shanghai before looking at new Asian points, such as the secondary Chinese cities United is exploring. Nine of American's 10 longest routes are to Asia, and American is replacing 777-200s with 787s, delivering the obvious unit cost advantages but also helping to moderate capacity while maintaining a daily service in what are still emerging markets. 77% of American's 787 ASKs are to/from Asia. Asia has been a strategic growth market, with low fuel prices (American is un-hedge) significantly helping financial performance. Asia may catch a second wind as American considers re-deploying capacity out of the weakening Latin America market. American has also increased Latin American services at Dallas to make its largest hub a connecting point between Asia and Latin America, having decided against using Miami as a connection point.