American Airlines 1997 Annual Report Download - page 19

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17
We continue to offer less service to Japan than we would
like because of a highly restrictive aviation agreement between
the United States and Japan, which has prevented us from
adding any new service since 1991. In January 1998, after
months of aviation talks, the United States and Japan complet-
ed a new bilateral agreement that, among other things, gave
American the right to offer daily nonstop service from Chicago
O’Hare to Tokyo. We also have received tentative approval for
daily nonstop service from Tokyo to New York Kennedy and
Boston and from DFW to Osaka.
We will continue to look for opportunities to extend the
reach of our international network. However, in today’s airline
industry, it has become important for every carrier with inter-
national ambitions to find one or more foreign partners. By
granting antitrust immunity to alliances between U.S. and for-
eign carriers, the U.S. has made international alliances a virtual
necessity. American has reacted to the changing environment
by setting out to create the industry’s premier set of alliances.
Entering 1997, American had international partnerships
in place with Qantas Airways, Canadian Airlines, Singapore
Airlines, British Midland, LOT Polish, Gulf Air, and South
African Airways. Unfortunately, our biggest and most impor-
tant alliance — based on an agreement American reached with
British Airways in June 1996 — spent 1997 in a holding pat-
tern. As of this writing, the alliance has not been approved by
any of the regulatory authorities whose blessing it requires.
American’s strength in
Latin America is in its
route network and rep-
utation for quality ser-
vice. German Walther
and American’s team
in Lima exemplify our
commitment, as does
our growing service to
Lima – from DFW
and from New
York Kennedy
(beginning
spring 1998).