Darryl Jenkins Publishes Report on American Airlines

Cornerstone Network Strategy Necessary for Post-Chapter 11 Success

WASHINGTON, June 14, 2012 /PRNewswire-USNewswire/ -- Darryl Jenkins, Founder and President of Theairlinezone.com, published a report today on the American Airlines cornerstone network strategy.  The report assesses the American Airlines cornerstone network strategy through both domestic and international lenses. The domestic route structures of oneworld, Star, Skyteam and the unaligned airlines are reviewed.  In addition, connectivity to international networks is assessed.

In combination with oneworld and immunized joint ventures with IAG and others, the cornerstone model is well suited to industry conditions. oneworld is well positioned in the cornerstone markets for the following reasons:

• They are number two overall in the largest markets.
• Cornerstone markets have plentiful O&D (origin and destination) traffic and lucrative corporate traffic. American's key gateway hubs – including New York JFK, Los Angeles, Dallas/Ft. Worth, and Miami – have advantages for global traffic relative to Delta's and United's major hubs.

There are several key reasons why American Airlines finds itself uncompetitive in cost.  These include its late entry into immunized alliances, its fleet imbalance, and the competitive impact of industry consolidation. 

In order for American's cornerstone network strategy to be fully realized, however, the breadth of international service from these cornerstone hubs must be complemented and fed by regional feed with aircraft better suited to market sizes and yields. The combination of smaller mainline aircraft and regional scope relief should further unlock the value in the cornerstone markets.

The cornerstones are an important and necessary part of American's network.

The report also includes an analysis of the competitive landscape in each of the cornerstones and other important US markets.

Join us for a webinar to discuss the report on Monday, June 18, 2012 at 2 P.M. EDT. Register now at https://attendee.gotowebinar.com/17995/register/4139506590349732096.

After registering, you will receive a confirmation email containing information about joining the webinar.

To access Darryl Jenkins' full report after 7 a.m. on June 15, visit www.theairlinezone.com or email him at [email protected].

About Darryl Jenkins
Darryl Jenkins is one of the best-known authorities on aviation in the world.   He is a regular commentator in the national press, including CNN, CNBC, ABC News, NBC News, the Nightly Business Report and various other cable programs. His expertise in reservations systems, revenue management, operations, safety management, air traffic control, and aviation policy is widely regarded.  Jenkins was a member of the Executive Committee of the White House Conference on Aviation Safety and Security.

Darryl Jenkins has been involved in the airline travel business for twenty years, beginning as a travel agent. His background in aviation includes consulting work for a number of major airlines as well as extensive literary pursuits. He has authored several books on aviation including: "Managing Business Travel," "The Savvy Business Traveler," "Financial Distress in the Airline Industry," "Failed Partnership," and "The Handbook of Airline Economics."

Disclaimer
This work was prepared by Darryl Jenkins without the financial support of any organization, institution, company, or affiliate.  American Airlines assisted in providing or obtaining some of the data analyzed at his request.  At various times in his career Mr. Jenkins has been a consultant to airlines and institutions that may have an interest in the outcome of American Airlines' bankruptcy. 

Editor's Note: Interviews available upon request; report will be available for download from 7 a.m. on June 15 at theairlinezone.com or by emailing [email protected]. Webinar and Q&A on June 18.

SOURCE The Airline Zone