American Airlines announced (16-Oct-2013) plans to launch its first-ever nonstop service from Dallas/Fort Worth International Airport to Hong Kong International Airport and Shanghai Pudong International Airport in 2014, as it seeks to further strengthen its position in key international markets, especially in the Asia-Pacific region. The new daily service between DFW and Hong Kong will be operated with a Boeing 777-300ER, marking the first time American will deploy its flagship aircraft to Asia. The new service between DFW and Shanghai will be operated with a 777-200 aircraft. Pending regulatory approval, customers can travel on these new routes beginning summer 2014. Both routes will be operated as part of American's joint business agreement with fellow oneworld alliance member Japan Airlines. The service to Hong Kong will add a new destination to American's international network, and the service to Shanghai complements American's existing service from Los Angeles and Chicago O'Hare. Through oneworld member airlines and their affiliates, American's customers will have access to more than 145 destinations within Asia. In addition to welcoming the 777-300ER to Asia with the launch of service to Hong Kong, American will take delivery of and deploy additional 777-300ER aircraft to key international markets in 2014, including routes from American's hub in Miami for the first time. American will begin operating the 777-300ER on one of two daily services from Miami to London Heathrow in Jan-2014, and one of its four daily services from Miami to Sao Paulo (GRU) in Nov-2014. American will also operate an additional 777-300ER between New York JFK and London Heathrow in Mar-2014. By the end of 2014, American will have 16 of the 20 777-300ER aircraft it has on order deployed throughout its network. [more - original PR]
American Airlines to launch service from Dallas/Fort Worth to Hong Kong and Shanghai
You may also be interested in the following articles...
Interjet’s international passengers soar with new US transborder push against Mexican and US rivals
International passenger numbers for the Mexican low cost airline Interjet skyrocketed more than 50% in the first seven months of 2016, reflecting the launch of more than 10 new international routes during that period, and with US transborder routes representing the bulk of Interjet’s international expansion.
Interjet is no doubt positioning itself to seize on opportunities created by a new, finalised bilateral between the US and Mexico that lifts restrictions on the number of airlines operating on specific routes between the two countries. Interjet’s rival Volaris has also grown its US transborder passengers in 2016, but it has a different route profile from that of Interjet. Generally, Interjet is subject to higher levels of competition on some of its transborder routes than Volaris, given that Interjet and Volaris offer different products to their passengers.
During the past two to three years Interjet and Volaris have been essentially tied for the coveted position of Mexico’s second largest domestic airline. But for the seven months ending Jul-2017 Volaris logged 22% domestic passenger growth, while Interjet’s passenger numbers inched down slightly, resulting in Volaris assuming full command of the second place ranking.
United Airlines Part 1: New management declares ambitions to usher in a new competitive era
For years United Airlines has operated at a competitive disadvantage to its large US network peers. The challenges that United never seemed to overcome were largely self-inflicted, and ranged from widespread employee discontent to consistent revenue shortfalls.
Now United finally appears to be charting a course to level the competitive playing field with its large global US network competitors, to close the long-standing revenue gap it has held with its rivals. The elements of United’s plan to shore up revenues include bolstering connections at its hubs, improved revenue management, and product segmentation that entails a new basic economy fare structure whose restrictions are more stringent than those of its peers.
United’s revenue transformation will not occur overnight, but for the first time since its 2010 merger with Continental the company seems laser-focused on shrinking the competitive challenges that have hindered its performance. It projects billions in improvement – to pre-tax profits by 2020 – as a result of its doubling down on efforts to shore up revenue. Obviously the measure of United’s success lies in its execution and its ability to navigate competitive responses to its revenue-generating strategies.
This is part one of a two part series examining United’s strategies to compete more effectively with its peers on revenue and costs.