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AA wants to grow in Asia

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General Lee

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Joined
Aug 24, 2002
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AMR, Pilots Mull Formal Pact For Asian Flights
Tuesday January 13, 4:22 pm ET
By Elizabeth Souder, Of DOW JONES NEWSWIRES


NEW YORK (Dow Jones)--AMR Corp. (NYSE:AMR - News)'s American Airlines, the world's largest airline, is talking to its pilots union about instituting a formal agreement to cover flights to Asia as the airline considers expanding its service there.
AMR spokesman Roger Frizzell said the airline currently has a verbal agreement for the pilots to operate flights as far as Japan and as long as 16 hours, known as super longhaul flights.

But as the airline considers adding more flights to Asia, including new service between Chicago and Hong Kong in 2005, Frizzell said AMR is looking for a formal agreement with the pilots union, called the Allied Pilots Association.

Currently, American operates five flights to Japan, and will add service between Los Angeles and Japan in April, Frizzell aid.

Union spokesman Gregg Overman said pilots had spoken with managers about a formal agreement a few years ago.

"For a variety of reasons, principally the push to cut costs, but also some of the difficulties Asia went through last year, it wasn't a priority," Overman said.

Now, the pilots and managers plan to revisit the topic, and plan to meet in coming days and weeks, Overman said.

Part of the discussions will be how many pilots should operate the flights, and what the crew make-up should be, he said. Also, the sides will discuss how the airline will handle the risk of emergency landings at difficult and possibly inhospitable airports, he said.

But Overman said pilots are pleased that the topic has come up.

"It's growth for a change," he said.

Major U.S. airlines in December saw growth in the number of passengers flying internationally, particularly to Asia. American said revenue passenger miles flown to the Pacific region rose 6.8% in December to 311.5 million. A revenue passenger mile represents one paying passenger flown one mile. Pacific capacity rose 1.4% in December and load factor improved 3.9 percentage points to 79.4%, among the regions with the strongest December load factors



I wish we could do some of that at DAL. All we have is one daily 777 from ATL to NRT. It did help us when the initial SARS scare came last year, but obviously growth in Asia and especially China over the next ten years will be huge. Maybe we can join in too---if we take some major paycuts.....

Bye Bye--General Lee
;) :rolleyes:
 
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Ultimately I'm believe AMR thinks it can cut into the Pacific Market the way it cut into the North Atlantic during the 80's. Perhaps the 777 economics will allow AMR to do what it did over the North Atlantic with the 767. Besides we all know they're ain't no money to be made domestically anymore.
 
Everyone realizes that the next big international growth phase will be Asia. AMR has Cathy Pacific as part of the One World and JAL as a code share partner. So, IMHO all they are really looking to do is fly some 777's over to Narita and Hong Kong, in exchange for the feed that they get.

With the current load factors 90%+ the SARS scare is over and should help to get AMR through the lean season.

AMR has to be in a position to take advantage of any new allocations of China routes and landing slots. Getting the pilots to agree to fly long haul routes is only the first part of the equation.

The problem is AMR mgt and the pilot group are so far apart, I could eaisly see the pilots saying "screw you". The union is going to want something in exchange for a chage to our current contract. My guess is mgt is not willing to give back a thing. We have been down this road before and we still don't have a contract that allows us to fly ORD-Hong Kong.
 
I am doing my BS degree in economics and my focus has been on aviation. i just wrote my senior thesis on asian airline economic developement. all indications considered, it seems to be a promising market. it is also interesting to look at the future of air cargo for the area.
 
The biggest sticking point is going to be staffing of the trips. AMR wants to fly with 1 CA and 3 (or more)FOs, while APA says at least 2 CAs (or more) per flight.

There is also discussion about radiation exposure, and APA wants some way to cap a pilot's exposure. If he flies during a solar flare and get's a entire month's worth of exposure in one trip, he's removed from further trips and pay-protected.

Expect AMR to scream bloody murder, even though we have the lowest 777 rates going.
 

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