The Hindu Business Line : American Airlines bullish on Indian aviation market

THE world's largest airline, American Airlines has managed to achieve several strategic objectives with the launch of its non-stop daily return flight between Chicago and Delhi.

Besides meeting the demand of passengers wanting to travel to and from both countries, the flight is also strategically important as it serves the needs of some of the biggest names in US corporate legion, like IBM and Dell, that have close links with India.

"IBM is one of our biggest customers and the launch of the route should help when we have to renew our contract with them. Besides, several hi-tech companies are interested in this route," said the airline's Executive Vice-President (Marketing), Mr Daniel P. Garton.

Flying abroad: What is also helping matters for American Airlines, which flies to 250 destinations in 40 countries, is that American low-cost airlines do not operate abroad as yet, creating a more viable market for full service carriers to take the first advantage.

Interestingly, it is not only American Airlines that has launched non-stop services between India and the US. Another US airline, Continental, has also launched daily non-stop flights between Delhi and Newark (New York).

American Airlines is also using this flight that was launched in the middle of last month for better asset management.

For starters, the airline was able to launch the Delhi flight in record time and that too without withdrawing from any city in any country that it operates.

More importantly, it was able to do so without having to purchase any new aircraft. The aircraft that operates from Chicago to Delhi and back could also be turned around in time to operate a Chicago-London flight and be back in the US to fly to India again, officials indicated.

The launch of the flight has already received a lot of interest from different communities including doctors, American universities as well as tourists.

Load factors: "The service is doing very well right through the holiday season and till the end of January, the passenger load factors are high in both in the premium and main cabin of the aircraft," said Mr Thomas Aichele, Managing Director, Passenger Sales, Chicago.

Commenting on the future roadmap of the airline in India, officials indicated that going by market size, the airline could look to operate to Mumbai and Bangalore.

However, no date has yet been set for launching flights to other Indian destinations.

Code share: Currently, the airline is looking towards the code-share agreement that it has with Air Sahara to help passengers reach different parts of the country just as its extensive network in the US, Canada, and other parts of the region helps passengers from India go beyond Chicago in less time.

While industry analysts might have a different view about Air Sahara, the airline has a solid partner in American Airlines.

"The partnership helps provide a balance of benefits. Besides, you need a partner to quickly ramp up your visibility," said Mr Henry C. Joyner, Senior Vice-President, Planning.

However, going by the track record of airlines from America that have withdrawn non-stop services from India, what guarantees are there that this flight is here to stay?

"If we lose money, then we may have to make a strategic decision. However, India has seen the greatest level of capacity increase in the last 12 months. As yet, no aviation market has grown as fast as India. It will not surprise us if the growth in the market is double-digit," Mr Garton said.