Re: possible new engine for the B777-200X

Date:         13 Jul 97 01:25:51 
From:         "jla" <jb7@usa.net>
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AA has had in interest in Asia for a long time.  True, their interest has
been centered on Japan, to be more specific, Tokyo/NRT, but then again, any
carrier with interest in Asia, must concentrate on Tokyo.  That is where
the majority of the money and traffic are.  Hong Kong is also a very
lucrative business market.  As the two centers of Asian finance, TYO and
HKG are big money makers.

As for other Asian destinations, such as Bangkok, Manila, etc., these are
indeed lower-yield, leisure markets mainly, but there are exceptions.
PEK/Beijing and SHA/Shanghai are very well served from TYO, as there is a
lot of high-yield business traffic in these markets.

The problem is UA and NW already have footholds at NRT (an already
over-crowded airport) and the Japanese are still fighting to hold back the
U.S. carriers from expanding or adding new service, especially with the
extensive and lucrative fifth-freedom rights enjoyed by the U.S. carriers.
Many of AA's attempts at expanding in the Asian markets have been denied,
in favor of other carriers who would more competetively serve the routes,
such as ORD-NRT, a hard-fought battle, eventually lost to UA.

However, in all fairness, UA purchased the PA Pacific routes and
concentrated their efforts there while AA and other U.S. carriers pointed
their strategies across the Atlantic.  When UA finally decided to make its'
Atlantic move, it was only through the purchase of PA's London/LHR routes
that it finally made it.  Many of UA's attempts to expand in Europe were
met with the same response as AA's to expand in Asia--better served by
another carrier.

DL did not have the feed or market presence to make HKG worthwhile, not to
mention the poorer performance of the MD-11 as compared to the 747-400
flown by UA and CX.  And AA knows it does not have enough market presence
to warrant an aircraft the size of the 747-400, either.  Hence, the 777
would be a great aircraft in terms of performance and capacity.  It has
been published that AA is not overly happy with the performance of the
MD-11, either.  I believe it was stated that, with the recent Boeing deal,
they would phase out the MD-11 and replace them with the 777.

And as for Viet Nam, DL/UA/NW have all entered applications to serve Hanoi.
 This should be another very lucrative, money-making market as well, as
Viet Nam re-enters the world economy.
--
jla