AMERICAN AIRLINES is in a bullish mood. Whilst its competitors concentrate on non-airline matters (see Delta and Northwest) the world”s largest air carrier, while not immune from fuel cost problems, continues to hit its passenger targets and expand with regard to ex-UK services. Next summer it will operate up to 23 daily flights including, for the first time, Newcastle. On the success (or failure) of Newcastle depends American Airlines future growth strategy for UK operations. If the all economy class daily service meets its planned objectives, clearly the airline will look at other UK origination points. From a financial low in 2002, the airline has engaged a cost saving schedule targeted at $4bn of which nearly half has come from labour savings. Staff and aircraft productivity has risen significantly and in the second quarter of 2005 it reported a $58m pre-tax profit. The airline also announced last week that it is going to fit blended winglets to 20 of its 757s, the fuel saving per aircraft as much as 5%.
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