Sky Talk

Arpey's prepared remarks to Japanese press

Here are the comments American Airlines chief executive Gerard Arpey made to Japanese media on Wednesday.

Arpey is in Tokyo to meet with Japanese government officials and Japan Airlines management to discuss American's proposed $1.1 billion investment in the struggling carrier.

Click below for the full text.

-Andrea Ahles

Arpey says American could invest more than $1.1 billion in JAL

In his overnight comments made in Japan, American Airlines chief executive Gerard Arpey told reporters that it might invest more in the financially-struggling Japan Airlines than the $1.1 billion it has already proposed.

"Conceviably, there could be a bigger investment made by the oneworld-TPG group depending on the circumstances," American Airlines chief executive Gerard Arpey told reporters in Tokyo on Wednesday.

Arpey was in Japan on Wednesday meeting with government officials and management of Japan Airlines. JAL has lost hundreds of millions of dollars this year and is seeking government loans as it cuts routes and tries to restructure.

And while JAL is currently part of American's oneworld alliance, it has been offered a $1 billion investment package from Delta Air Lines to switch to Delta's SkyTeam alliance.

Arpey also said that if JAL continues its relationship with American, the Fort Worth-based airline would give JAL "exclusivity" and would not try to create alliances with other airlines in Northeast Asia that could compete with JAL's network. He did not reveal any additional financial details of the investment proposal or how much is being funded by TPG, a private-equity group.

Last week, the U.S. and Japanese governments agreed to an "open-skies" treaty that relaxes limits on passenger and cargo flights that currently exist between the two countries.

If JAL chooses American's proposal, American said it would apply for anti-trust immunity for its relationship with JAL. Anti-trust immunity would allow the two carriers to more closely market and operate flights.

In advocating his airline's proposal, Arpey said choosing American's "superior" proposal over Delta would help JAL in its goal for "long-term success." He added that if Delta was chosen, he did not believe that U.S. government regulators would approve an anti-trust immunity venture between Delta and JAL.

"We would object loudly and stridently," Arpey said. "I think there is zero possibility that that application would be approved."

-Andrea Ahles

Boeing 787 takes to the air at long last

Boeing's revolutionary 787 jetliner, with the bulk of its major structural components made of carbon fiber composites (high strength, high tech plastic) finally made its first flight today.

The company hasn't yet issued a press release and news coverage so far is sketchy, but here's a You Tube video of the takeoff.

In development since 2003, design and production of the test aircraft has proved far more difficult than Boeing anticipated, with today's flight two-plus years behind schedule. American Airlines is one of the many carriers that have ordered nearly 1,000 of the aircraft, which Boeing promises will provide dramatic operating cost reductions and a more comfortable ride for passengers.

Vought Aircraft Industires of Dallas played a major role in development of the 787.

We'll post more details or news as we get it.

-Bob Cox

 

American continues its pr campaign for JAL

Around 11:45 p.m. last night, American put out a press release extolling the virtues of an "open skies" agreement between the U.S. and Japan.

"Open Skies agreements end discriminatory aviation policies and are in the best interest of Japanese and American consumers and airlines alike," said Will Ris, American's Senior Vice President - Government Affairs. "Airlines with antiquated, anti-competitive policy viewpoints might believe that it's OK to leave well enough alone. At American Airlines, it is our experience that Open Skies agreements have proven to increase travel choices and enhance competition, which results in greater benefits to consumers."

Both governments are holding talks in Washington D.C. this week on an "open skies" agreement that would give carriers more freedom to open routes and schedule flights between Japan and the U.S

American's full release can be found here.

-Andrea Ahles

American Airlines headlines on Tuesday

Several things going on for American Airlines this morning. I've been in Dallas at an SMU breakfast where they talked about the economy (the consensus: it's bad but not as bad as last year....) so I'm playing catch-up on the news of the day.

-First off, Dow Jonesis reporting that Delta is willing to cover the cost of JAL switching over to SkyTeam from American's oneworld alliance. The news report comes one day after American chief executive Gerard Arpey publicly discussed the financial benefit JAL has being part of oneworld.

-Evidently, American Airlines has fired a web design employee for responding to a blog post from a disgruntled user about the company's website. Today in the Skysays that American claims the employee revealed company secrets in the blog posting while media reports say that the employee responded with a polite and thorough response to the complaint while defending the company as well.

-An appeals court has upheld a $1.24 million judgment against American Airlines in a lawsuit from a flight attendant who said she was fired unfairly and accused the carrier of employment discrimination. My competitor at the DMN has that tidbit.

-Andrea Ahles

American Airlines moves up Chicago-Beijing launch by a few days

American Airlines is moving up the launch of its new Chicago-Beijing flights by a few days next year, to capture traffic from passengers flying for a major Chinese holiday.

 

American said its will begin the service on April 26, 2010, with a flight to China from Chicago. The first return flight will be April 27. American had planned a May 1 launch.

 

“We decided to reschedule our inaugural flights so visitors who want to attend China’s International Labor Day activities on May 1 can do so by flying to Beijing on American Airlines,” Loretta Kuss, American’s director–Chicago passenger sales, said.

 

American will fly the route using widebody Boeing 777 jets, featuring first, business, and economy class.

 

Flight 187 departs 11:15 a.m. daily from Chicago, and arrives 1:45 p.m. the following day. Flight 186 departs Beijing Capital Airport at 3:50 p.m. daily, and arrives 3:40 p.m. the same day at Chicago.

 

– Scott Nishimura

Admirals Clubs are 70!

American Airlines is throwing a birthday party today.

The Fort Worth carrier’s Admirals Club is turning 70, and American is celebrating with birthday cake, champagne and prizes at Dallas/Fort Worth Airport.

The club, launched as a VIP lounge at New York’s LaGuardia Airport, offers members Wi-Fi access, showers, snacks and other benefits.

And as part of the birthday sweepstakes, customers can register to win a vacation to Maui, a trip to Orlando, Fla., a night at a Hollywood movie premier or a lifetime membership to the Admirals Club lounges. Customers will also get a $70 discount off annual membership, which usually costs $300 to $825, depending on the type.

But don’t expect to be invited to the party unless you’re already planning to fly Monday. The party is being held at a minilounge that the airline has set up near the departure gate for Flight 70 from D/FW to Frankfurt, Germany. And while the party is open to anyone in the terminal, you still have to get through TSA security lines, and that, of course, requires a ticket.

-Andrea Ahles

American July traffic numbers

American Airlines had fuller planes in the sky in the July but there were fewer of them, the company said on Wednesday.

The Fort Worth-based airline reported that its load factor increased 1.4 points to 87.3 percent as American cut capacity by 8 percent in July.

And despite flying fewer flights this summer, there were fewer passengers as American reported that traffic dropped 6.4 percent to 11.6 billion revenue passenger miles in July compared to the same month last year.

The traffic declines, while still significant, were not as steep as the decreases in May and June as airlines had launched several air fare sales this spring to stimulate summer travel.

Shares of American’s parent company, AMR, [ticker:AMR] rose 25 cents to close at $5.90 on Wednesday.

American Eagle, AMR’s regional carrier, also reported a traffic decrease of 5 percent as it cut its flight schedule by 10.8 percent for July compared to the July 2008. Its load factor also rose 4.8 points to 77.8 percent compared to 73.1 percent in the same month last year.

-Andrea Ahles

AA Skycaps in Mass. win appeal in lawsuit regarding tips

American Airlines skycaps in Massachusetts have won a court appeal in a lawsuit regarding lost tips.

The Associated Press reports that the Massachusetts Supreme Court ruled in favor of the skycaps, who sued the Fort Worth-based carrier for lost tips when American instituted a $2 baggage fee in 2005.

The skycaps were originally awarded $325,000 by a jury for lost tips. American had appealed the case, saying the skycaps were not covered by the state's wage act because they were subcontractors.

Read the AP story here.

-Andrea Ahles

AA plane makes emergency landing in St. Louis after bird strike.

An American Airlines plane made an emergency landing in St. Louis after its right engine was struck by a bird.

Flight 449, carrying 140 passengers and 5 crew members, was heading to Los Angeles when the bird strike occurred shortly after taking off from St. Louis’ Lambert Airport around 2 p.m.

American Airlines spokesman Tim Smith said the pilot of the MD-80 never lost power on the struck engine and was able to make a normal landing. The passengers were put on another plane and the damaged aircraft was taken out of service, he added.

-Andrea Ahles