American Upgrading Presence at Tokyo Airport

By Trebor Banstetter, Fort Worth Star-Telegram, Texas

Jan. 16–After losing its latest bid for nonstop service to China, American Airlines is increasingly turning to its partnerships with foreign carriers to fuel its expansion into Asia.

Fort Worth-based American is upgrading its presence at Narita Airport in Tokyo to increase the opportunity to connect passengers to flights on Japan Airlines, with which it has an alliance. The airline is also adding more room and more luxurious amenities in its first-class lounge as it works to attract well-heeled international business travelers.

For North Texans flying from Dallas/Fort Worth Airport, where American has two flights daily to Tokyo, it means more opportunity for one-stop flights to cities like Bangkok, Seoul and Singapore, as well as easier connections in Japan and more high-tech perks between flights.

“This is really good for D/FW passengers,” said David Cush, American’s senior vice president of global sales. “If you’re going from D/FW to Singapore, for example, it cuts 65 minutes off your trip.”

Flights over the Pacific have long been the weakest part of American’s international network. The airline had hoped to boost its presence in Asian markets with a new nonstop flight from D/FW to Beijing, China. But last week government regulators awarded the coveted China route authority to rival United Airlines, which will use it to connect Washington, D.C. and Beijing.

But partnerships with carriers like JAL, which is the largest carrier in the Asian-Pacific region, and Hong Kong-based Cathay Pacific will help American offer more Asian destinations to passengers even without its own nonstop flights.

“These (partnerships) are a great way for airlines to get their passengers into markets where they don’t have any service,” said airline consultant Stuart Klaskin of Klaskin, Kushner & Co. in Coral Gables, Fla. “And it doesn’t cost them much, which is a real plus.”

American’s partnership with JAL, which began in 1999, allows the airlines to sell seats on each other’s flights, and the airlines split the revenue. American flies passengers to Tokyo, where they connect to JAL flights to cities throughout Asia.

That cooperation will strengthen later this year, when JAL joins the Oneworld airline alliance that includes American, British Airways, Cathay Pacific, Qantas and several other carriers. Alliance members have even more seamless connections for passengers, and additional benefits such as allowing American customers to accumulate frequent-flier miles, including premium-tier miles, while flying on JAL.

American executives say the changes at Narita Airport will help American take advantage of the alliance. The carrier is moving to a terminal that also includes partners JAL, Cathay Pacific, Qantas and Finnair, so connecting gates will be just a short walk from American’s facilities.

At the old terminal, American passengers had to take a bus to reach most connections, and schedulers had to include a minimum of two hours between flights.

The new location means just an hour is needed for connections, which opens up more options for travelers.

“It is significantly more convenient for our passengers,” said Don Casey, American’s managing director of international planning.

Narita has become an important Asian hub for American and its partners, he said.

“To get our customers to places like Bangkok, Singapore, Taiwan, Korea, China, we have to have a partner,” he said. “That’s why Tokyo has become so critical for us.”

Those partnerships have paid off in recent years. American’s total connecting traffic with its partners increased by 70 percent between 2000 and 2005, Casey said. And the alliance allows the carrier to sell fares to about 350 additional destinations worldwide, increasing its total reach to 600 cities in 135 countries.

Cush called the alliances “a lynchpin of our Asia strategy.”

He said the partnerships are just as important, he said, as establishing new nonstop service.

“Our Asia strategy has always had two prongs,” he said. “One is non-stop service, but the other is connecting service over Tokyo.”

Consultant Klaskin said there generally is little downside to the partnerships. One risk, however, is that passengers who experience a foreign carrier may be tempted to book their next flight directly with that airline if it has superior service.

“Some of the Asian airlines have the best service in the world,” Klaskin said. “American has to make sure they don’t look like the ugly cousin in comparison.”

Keeping passengers away from foreign carriers was one of the driving points behind American’s recent move to upgrade its business-class cabins with new seats, in-flight entertainment systems and new menu offerings.

Cush said the upgrades to the airport lounge at Narita is another step at improving perks for business travelers.

The new lounge, which is about twice as large as American’s current club, will feature high-speed wireless Internet connectivity, workstations with Lenovo computers, powerport and ethernet connections at most seats, and printers that can easily print documents via a secure Internet page.

“Our waiting times will be a lot shorter, but you’ll also have a lot more options at the Admiral’s Club while you’re there,” he said.

Trebor Banstetter, 817-390-7064 tbanstetter@star-telegram.com

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Copyright (c) 2007, Fort Worth Star-Telegram, Texas

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