American Airlines boosts Asia network American Airlines is adding Hong Kong and Shanghai to its daily Asian routes this week as the carrier capitalizes on 12 consecutive months of air freight growth and improving yields, rare in an industry struggling against excess capacity and fierce competition. The daily passenger services from Dallas-Ft. Worth (DFW) to Shanghai and from DFW to Hong Kong will inject significant belly-hold space into the two non-stop routes, but cargo division president Jim Butler said at 16 hours, the Hong Kong flight is the longest in the carrier’s international network, restricting the cargo payload. “The payload will be greater out of Hong Kong, maybe 7.7 tons, depending on the time of year, but we are just starting the service so we are still a little conservative,” he told the JOC at a press briefing in Hong Kong. Head winds add to an aircraft’s fuel consumption and can limit the volume carried, especially on a long-haul service across the Pacific Ocean. Shanghai Pudong airport will be served by a Boeing 777-200 that will be turned around in two hours, while the Hong Kong service will use the 777-300 extended range aircraft, described as a “mini freighter” by the airlines, that will stay overnight. Butler said AA Cargo recently managed to load close to 50 tons on a 777-300ER from Los Angeles to London Heathrow. While most cargo divisions are struggling for profitability in a climate of stiff competition and excess capacity, Suzanne Boda, American Airlines senior vice president Asia, Canada, Europe, said cargo yields are actually improving on major routes. “We are seeing better results on the key markets of China and Europe as with the merger we can now offer customers global contracts on one air waybill,” she said. The merger between American Airlines and U.S. Airways in December is gradually being worked out, but even though the joint network is being leveraged, it has still left the giant carrier operating as almost two separate airlines. American Airlines has nine major hubs in the U.S., inheriting the East Coast hubs of Philadelphia and Charlotte from U.S. Airways. Still, Butler said cargo would be the first area of the company to be fully integrated, and that is when customers will derive the full benefit. “We currently run two airlines together but are looking to get cargo on one air waybill by the end of the year. When we receive the shipments, all the ramps, warehousing and handling will have one standard,” he said. American Airlines is transforming its fleet and at 556 jets has placed the largest aircraft order in history. More than 100 planes are Boeing 787s, also known as the Dreamliner, with 42 Airbus 350s. Throughout this year the carrier will have two planes arriving every week. It is an order book of Middle Eastern proportions, but the new and fuel-efficient wide-body aircraft will allow the carrier to save on operating costs, while the greater lift capabilities will enable heavier payloads carried over longer distances that will lift yields. Connecting the city dots between Asia and Latin America is also very much on the minds of the American Airlines executives. The new route from Hong Kong to Dallas will add a link from the Pearl River Delta to Bogota, Buenos Aires, Caracas, Lima, Rio de Janeiro, Santiago and Sao Paulo. “We are still in the early stages of putting the network together but are starting to link more and more hubs,” Butler said. “The fleet transformation, improved route network and investment in pharmaceuticals and perishables facilities are starting to show dividends. American Airlines will have 10 daily flights out of Asia when Shanghai and Hong Kong come online. The U.S. carrier flies from Shanghai to Chicago O’Hare, Shanghai-LAX, Beijing-Chicago, Tokyo-Chicago, Tokyo-DFW, Tokyo-LAX and Seoul-DFW. The U.S. is China’s top trading partner, with imports and exports between the two countries topping $520 billion in 2013. More than $42 billion in exports is transported through Hong Kong airport every year. JOC
Posted on: Thu, 12 Jun 2014 22:33:57 +0000
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