This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

American Airlines: More to Come at LAX

LOS ANGELES ( TheStreet) -- American (AMR), implementing its hub-focused strategy, is moving to increase its presence at Los Angeles International Airport.

"Los Angeles is the third most important travel market in the world," said American President Tom Horton, in an interview with TheStreet. "So we're looking hard at LAX -- there may be more to come."


On Wednesday, the CEOs of American and partners British Airways and Iberia discussed the benefits of a new transatlantic alliance. Iberia CEO Antonio Vazquez said the carrier will begin Madrid-Los Angeles flights in April. Within the new alliance, which has anti-trust immunity on transatlantic flights, American will be able to sell tickets on Iberia's flight.

Last week, American said it applied to fly between Los Angeles and Shanghai . "For us, it was a natural," Horton said. "Los Angeles is the most important gateway to Asia, and Shanghai is an extraordinarily important world city."

It is not unreasonable to conclude that American will add domestic flights at Los Angeles in order to feed international flights, Horton acknowledged, although he declined to provide specifics.

American has pursued a strategy of focusing on markets with the highest appeal to business flyers. Arpey reiterated Wednesday that "the Oneworld goal has always been to emphasize quality over quantity and to focus on the most important cities in the world." In Los Angeles, American carries 35% of all premium passengers, the biggest share, Horton said.

LAX is a battleground for the big four U.S. carriers, which all have double digit market shares, as well as for the three global alliances. The October schedule shows Star with 485 international flights per week, Sky Team with 283 and Oneworld with 256. Many of the flights are to Mexico and Central America.

Among the big four carriers, United has 193 daily departures while partner Continental has 24. American has 120. Southwest has 115. Delta has 80.

This paragraph is for airline geeks only. Airport year-to-date stats through August show American with a 14.6% market share and American Eagle with a 1.2% market share. United (UAL - Get Report) has a 13.2% share while partner Continental has a 4.3% share. Southwest (LUV - Get Report) has 11.5%, while Delta (DAL - Get Report) has 11.1%. SkyWest (SKYW - Get Report), which flies primarily for United, has a 5.5% share.

-- Written by Ted Reed in Charlotte, N.C.

>to contact the writer of this article, click here: Ted Reed

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DAL $44.52 0.00%
LUV $43.24 0.00%
SKYW $14.62 0.00%
UAL $65.18 0.00%
AAPL $128.46 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs