American Airlines 1998 Annual Report Download - page 16

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On the international front, American has a three-pronged strategy. In Latin America, American is
leveraging its powerful franchise by enhancing Miami as the premier gateway to that region, and establishing
Dallas/Fort Worth and New York as alternative gateways.
In Europe, American has strengthened its overall network by capitalizing on
its strength to the United Kingdom. Today, more than 40 percent of American’s
European service begins or ends at London Heathrow and
about two-thirds is in or out of the United Kingdom. Service
additions to the U.K. in 1998 included Newark to
London Heathrow and DFW to Manchester.
In Asia, American has established a greater
presence by securing new access to Japan, gaining the
right to fly to Tokyo from Chicago, Boston and New
Yo rk, and to Osaka from DFW. The Boston and New York
services have been deferred due to a lack of avail-
able take-off and landing slots in Tokyo, while
the Chicago-Tokyo service began in May and
DFW-Osaka was launched in December.
We have also broadened our services by forming numerous alliances to offer our customers access to
thousands of markets where adding our own service is either impossible or commercially unattractive. Alliances
are a capital-efficient way to offer the most service to the most places possible.
Our alliance includes relationships with 16 airlines around the world, and the
biggest and most important element is the oneworld alliance announced in the fall of
1998. The oneworld alliance, which was implemented in early 1999, links our network
and frequent flyer program with those of British Airways, Canadian Airlines, Cathay Pacific
and Qantas. Finnair and Iberia are expected to introduce oneworld benefits during the second half of 1999.
The oneworld alliance offers service to approximately 600 cities in 138 countries on more than 1,500 aircraft.
Closer to home, in April of 1998, American formed a domestic marketing agreement with US Airways,
which includes a combined frequent flyer program and reciprocal access to each carrier’s clubs and lounges.
And in December, American signed a letter of intent to enter into a marketing relationship with Alaska Air
Group, the holding company for Alaska Airlines and its regional affiliate, Horizon Air.
14
Adjustable
Headrest
Personal
Reading
Light
Power Ports
Telephone
Satellite
Communications
New business class seats on international flights