Wednesday, October 28, 2009

Not-So Friendly European Skies for American Airlines

AMR (AMR-$5.90), the corporate parent of American Airlines, continues to jettison unprofitable routes and shift more traffic capacity to hubs in Dallas/Fort Worth, Chicago, Miami and New York, along with the city of Los Angeles. That said, AMR’s competitive global presence could be severely impaired — think loss of feeder traffic — if two cornerstone OneWorld carrier initiatives collapse.

AMR and fellow partners British Airways and Iberia are looking to expand their existing oneworld pact to include coordinated schedules and prices — figuring that jointly serving destinations will create operating efficiencies and is permissible under the liberalized flight policies of the 2007 U.S. – EU “Open Skies” agreement(intended to deregulate transatlantic markets and permit airline operators to enter into cooperative arrangements, including codesharing, franchising, and leasing). In September 2009, the European Union issued a “Statement of Objection” related to the proposed joint business proposal ….
Continue Reading at BNET Travel ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned n this article. The 10Q Detective has a Full Disclosure Policy.

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