Customer Experience DOT Gives Tentative AA, AE and Rewards ATI Approval for Employees Help Haiti What's Our Payout? page 22 AA, BA, and IB page 4 page 22 Vol. 68, No. 1 | First Quarter 2010 Approaching 2010 with “2020” Vision Japan Airlines Continues With a decade of tough challenges behind Be a Good Place for Good People us, we have introduced American Airlines Our future depends on our remaining a Membership in oneworld FlightPlan 2020, a framework to guide us good place to work and to build a career as we meet the challenges and opportuni- — on maintaining a safe, collabora- Japan Airlines (JAL) reaffirmed its long- “American and all its oneworld part- ties that await us in the decade to come. tive, and respectful work environment standing oneworld alliance membership ners, and in particular British Airways The overarching theme of the framework where everybody’s contributions are as the airline took its first steps toward and Qantas, look forward to working is that to secure our future, we must be valued, and everyone’s ideas are not returning to financial stability. The deci- with JAL to create an even stronger competitive in everything we do. The only welcome, but sought out. sion cleared the path for AA and JAL to file partnership through commercial individual tenets of the plan are: an application for antitrust immunity and enhancements and assistance that can Fly Profitably trans-Pacific joint business agreement. generate important new revenue to JAL Invest Wisely Profitability is not only an end we are Together, the two airlines submitted and support its successful restructur- Realizing that we are in a capital- trying to achieve, it is also the means an antitrust immunity application to ing,” says Gerard Arpey, CEO. constrained world, we must invest to every other end. The other tenets of the U.S. Department of Transportation. The oneworld carriers previously out- wisely in the aircraft, facilities, and FlightPlan 2020 can only succeed if we Under the agreement, American and lined plans to deliver to JAL commer- technology we will need to compete achieve consistent profitability — so we JAL plans to cooperate commercially cial benefits valued at approximately and win in the years to come. need to keep finding ways to drive our on flights between North America and $2 billion in ongoing and incremental revenue up and our costs down. Asia providing greater customer choice revenue over three years. Earn Customer Loyalty This issue of Flagship News features with better connections, networks, and See Jetnet for more information about We must make American the airline of FlightPlan 2020 in action. You’ll notice frequent flyer benefits. AA and JAL. choice across a broad spectrum. That graphic icons that depict each of the means delivering the basics of customer five tenets of FlightPlan 2020. Check satisfaction to all customers, and deliv- out the FlightPlan 2020 center spread ering a differentiated travel experience and post it on your wall. Let it serve as for our Premium customers. a reminder throughout 2010 of what we must do to succeed. Strengthen and Defend If we compete hard every day, and Our Global Network stay focused on the principles embed- The strongest network is one that ded in FlightPlan 2020, we will win, most effectively delivers what custom- and we will make the decade to come ers value. That’s what we are building a decade of success for American through our corner post strategy in the Airlines. AIRLINES U.S., and internationally through new AMERICAN AMERICAN Texas 75261-9616 Texas PAID AA services and alliances, especially See more on FlightPlan 2020 Dallas/Fort Worth Airport, Airport, Worth Dallas/Fort MD 5577, P.O. Box 619616 Box P.O. 5577, MD U.S. POSTAGE U.S. oneworld. on pages 12 and 13 PRSRT STD PRSRT Flagship News Flagship The Plane Facts on AMR’s financial performance By Tom Horton, Executive VP-Finance & Planning and CFO A Global View of American’s Global Alliances Open any newspaper these days and it’s the DOT tentatively approved our plans. alliances, namely Star and SkyTeam. able to increase revenue while ensuring easy to find a story about the importance These developments are both important While we helped build the best global competition in the U.S.-Japan market. of global alliances to the airline industry. steps forward, not only for American alliance in oneworld, competing alli- We are confident that the ATI applica- We were just glimpsing that future in Airlines, but for oneworld as well. ances are working to grow stronger, too. tion will meet DOT’s pro-consumer and 1999 when American and four other Strengthening and defending our global pro-competition criteria for granting airlines started the oneworld alliance. network is a key tenet of FlightPlan 2020, Japan Airlines and oneworld ATI, which will pave the way for our Now, the frequent headlines illustrate and that’s the goal of these trans-Atlantic In Japan, Delta Airlines and the two airlines to operate a joint venture the critical need for airlines to take their and trans-Pacific initiatives. SkyTeam alliance for months have been between the United States and Japan. customers around the globe, even when courting JAL to leave oneworld. JAL, Ultimately, we are pleased that JAL they can’t do so with their own network. Global Alliances are Key to the which recently began to address its chose to stick with American and one- Partnerships are increasingly important, Success of Modern Airlines financial challenges through a bank- world, and we are excited about working and we’ve been doing everything pos- The interconnected nature of the global ruptcy reorganization, ultimately chose with JAL to create an even stronger part- sible to ensure that oneworld, now a economy has fully developed over the to stay with oneworld because of its nership through commercial enhance- global alliance of the top airline brands, past two decades. The production and superior partners, access to the most ments and assistance that can generate can compete aggressively with the other consumption of goods and services important markets, stable revenue base, important new revenue to JAL and sup- two global alliances. And, based on around the world is nearly unfettered by and growth potential in the future. port its successful restructuring. two positive developments in the trans- national borders. Our business custom- JAL’s decision to remain with one- Pacific and trans-Atlantic markets, our ers need, and expect, to go everywhere world is important because its network Trans-Atlantic Joint Business efforts are bearing fruit. in order to do business. However, as I in Northeast Asia is a valuable piece of Similarly, American and oneworld have I’m sure you’ve read plenty about our mentioned, no single airline can hope the oneworld mosaic of service (Japan faced tougher competition on the trans- efforts to defend and grow our partner- to fly to every point on the world map. alone is the second-largest economy in Atlantic from SkyTeam and Star, which ship with Japan Airlines (JAL) between A strong, global alliance, then, is the world), which is why you saw us already enjoy immunity in that market. the U.S. and Asia. In fact, you may be the key to opening international doors and oneworld redouble efforts to assist We have been focused on creating a aware of the good news we recently for our customers. Just as American JAL as it addresses its financial chal- level playing field by seeking antitrust heard from JAL, which has agreed to created a hub-and-spoke network, in lenges and to keep it within oneworld. immunity (ATI) with British Airways continue and strengthen its partnership partnership with American Eagle, to JAL’s network is especially important to and Iberia. Our competitors, with the with American within the confines of the deliver passengers across the United American because many customers on benefit of using ATI within their alli- oneworld alliance. On the heels of that States, our partners in the oneworld our five daily Narita flights connect on ances, currently have advantages that decision, American and JAL immedi- alliance act as a global hub-and-spoke JAL to destinations beyond Tokyo. American and oneworld do not have. ately filed a joint application for antitrust network. Because airlines typically are This was an important decision for JAL ATI will allow American, BA, and immunity with the U.S. Department not allowed to fly routes entirely within and the government of Japan, and we Iberia to set up a joint business offer- of Transportation (DOT), a move that a country outside of their home country, believe they have made the right choice ing customers more travel choices and ultimately will allow us to strenthen our our codeshare partners do the spoke fly- for JAL’s stakeholders, for Japan’s national convenience and an improved product. position — and oneworld's — in Asia. ing when we deliver them to their hubs. interests, and for consumers traveling Increased revenue and an improved We’ve also focused a lot of energy For example, our customer demand between Japan and the United States. competitive position will benefit our on our application to receive antitrust may not be enough to merit a nonstop American and JAL will focus on airlines, in turn benefiting all of our immunity (ATI) with British Airways from Miami to Bilbao, Spain, but we building a joint venture that can offer employees. We deserve a level playing (BA) and Iberia, so we can operate a can fly those customers to Madrid and JAL significant revenue growth beyond field, which is why we’ve remained con- joint business on flights between North let Iberia take them to Bilbao.