Manufacturing Industry
International expansion of US airlines causes some concern
Airline Industry Information, Oct 25, 2005
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
The increasing trend for US airlines to shift from competitive domestic routes to international ones has caused some concern.
The drive to offer more international services could possibly increase competition and push fares lower, which would be good for travellers but may be another problem for the already ailing airlines that are struggling with low-cost competitors and fuel prices.
Gerard Arpey, the CEO of American Airlines, has admitted that he is concerned, as he does not think recent capacity additions may be profitable for those who are making them. Arpey also said that American Airlines will end service to unprofitable destinations, such as the recent decision to halt operations to Nagoya, Japan from Chicago's O'Hare airport, Reuters reported.
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