"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) has a 13.2% share while partner Continental has a 4.3% share. Southwest (LUV) has 11.5%, while Delta (DAL) has 11.1%. SkyWest (SKYW), 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
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV