This Day On The Street
Continue to site
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

AMR Plays Its Best Card -- Latin American Strength

DALLAS ( TheStreet) -- Perhaps a merger with US Airways (LCC) is on the fast track, but American (AAMRQ.PK) is still pushing ahead on a restructuring plan that bolsters its international flying, particularly in Latin America, where it remains the dominant airline.

American said Monday it has signed new code-share agreements with two South American carriers, Bogota-based LAN Colombia and Sao Paulo-based TAM, both operated by Santiago-based LATAM Airlines Group, to strengthen its presence in Brazil and Colombia.

Additionally, late in 2013, American plans to begin to serve Bogota from Dallas and two Brazilian cities, Curitiba and Porto Alegre, from Miami. Dallas/Bogota will compliment Miami/Bogota, while the two new destinations will mean that American will serve nine Brazilian cities from Miami.

"This is part of our strategy to strengthen our network and our partnerships," said Virasb Vahidi, American chief commercial officer, in an interview. "We have said all along we want to create a premier network that caters to our best customers and grows in places where the economy is growing."

While momentum toward a merger appears to be strong, American continues to lay out the benefits of remaining independent, at least until its bankruptcy ends. In a letter to pilots on Monday, American vice president of flight, John Hale, wrote that CEO Tom Horton, appearing before pilots last week, "outlined the strong progress and improved performance we have achieved in restructuring and outlined all of the reasons -- from network and partners to fleet and products and services -- American is poised to be a successful, profitable and growing company that provides more opportunity for its people."

Hale noted that the standalone plan has, "at the heart," orders for 550 new aircraft. "These aircraft will help fuel growth and the addition of a substantial number of new mainline routes, with international outpacing domestic growth by a significant margin," he said. Given all the opportunities for career advancement, "a pilot's income in 2017 is expected to be about 50% higher than his or her 2012 earnings," Hale noted.

In the case of LAN Colombia, holding company LAN has been a member of the Oneworld Alliance for 12 years. Affiliates LAN Argentina, LAN Ecuador, LAN Peru and LAN Express, a Chilean domestic carrier, have had relationships with American. LAN acquired the Colombian carrier Aires in 2010. "We have been in a dialogue to expand the partnership," Vahidi said. LAN and TAM completed a merger this year, so the dialogue expanded to also include TAM in an American code share.
1 of 2

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs