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American Seeks to Increase Overseas Flights

Sources say that American Airlines wishes to switch some of its seating capacity to its overseas flights as part of its plan to come out of bankruptcy.  This plan will allow them to narrow the revenue gap that exists between them and their rivals.  Under the new plan, by 2017 international flights would have 44% of the seating for the airline, which would be up from the current 38%.  The unidentified source also said that Latin America in particular would see an increase in service from Miami and Dallas.

American is prepared to move forward with detailing their new strategy at a time when US Airways is pushing for a takeover of the carrier.  Currently, US Airways is looking for support on the unsecured creditors committee in its Chapter 11 case.  As for the decision to increase international seating, these routes face less competition from budget airlines, which means airlines can charge higher prices for international flights.  This would lead to higher revenue for American Airlines.

The above article is a summary.  Please see the source article at Google News.

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