American Airlines goes after Korean passengers

American Airlines’ Boeing 777-200 aircraft waits on the runaway for take-off at Incheon International Airport on May 10. / Courtesy of American Airlines

US carrier challenges

Korean Air’s monopoly

on Incheon-Dallas route

By Lee Hyo-sik

Timothy Ahern, vice president of American Airlines

American Airlines, one of the three major U.S. carriers, is set to steal Korean Air customers heading to the United States as it launches non-stop daily flights between Incheon and Dallas, Texas.

Breaking Korean Air’s two-decade-long monopoly on the Incheon-Dallas route, the carrier is offering passengers a long-distance trip in Boeing’s latest aircraft at competitive prices. It also plans to provide top-notch in-flight service with well-trained flight attendants and the latest amenities, matching the hospitality services offered by Korean Air and other Asian carriers.

In an interview with The Korea Times, Timothy Ahern, vice president of American Airlines International, said launching a flight between Incheon International Airport and Dallas/Fort Worth International Airport opens a new chapter for the U.S. airline.

"We have wanted to fly to Seoul for a long time. But we didn’t have the airplanes to do so in the past,’’ Ahern said. "But we now have enough airplanes to go to Seoul and other destinations in the new growth world. We are proud to introduce a Boeing 777-200 airplane for passengers flying with us on the Incheon-Dallas route.’’

The 777-200, with 245 seats, is one of the U.S. airline’s latest planes, intended to fly medium- to long-haul international routes.

On May 10, American Airlines began operating daily flights between Incheon and Dallas/Fort Worth.

Timothy Ahern, fourth from left, vice president of American Airlines, cuts the tape with Lee Young-keun, fifth from left, vice president of Incheon International Airport Corp., and other dignitaries during a ceremony at Incheon International Airport to mark American Airlines’ first flight between Incheon and Dallas/Fort Worth on May 10. The U.S. carrier has started operating non-stop daily flights on this route.

"After going through a strategic preparation process and establishing the new Korea office, American Airlines finally began a new nonstop service connecting Incheon and Dallas/Fort Worth on May 10,’’ Ahern said. "As one of the top 10 premium markets in the world, Korea has long been an important market for American and by inaugurating new nonstop service to Korea, we will expand our global network further in the Asia-Pacific region.’’

The vice president promised a wide range of services for Korean passengers so that they can enjoy a special in-flight experience only available at American Airlines.

"As Dallas/Fort Worth, where American Airlines’ hub airport is located, offers convenient onward connections to various destinations including domestic, Canadian and Latin American regions at all times. Our new nonstop service will be able to provide convenience and affordability to Korean travelers looking for onward connections,’’ he said.

American Airlines, founded in 1930, is a member of Oneworld Alliance along with British Airways, Cathay Pacific, Japan Airlines and many others. The carrier serves more than 260 airports in more than 50 countries and its fleet of nearly 900 aircraft makes more than 3,500 daily flights worldwide.

Competing with Korean Air

Ahern expressed confidence about the looming competition with Korean Air, which has been operating daily flights to Dallas since 1994. He believes American Airlines will win over a significant number of passengers who currently fly with Korea’s flagship carrier.

"I am confident that travelers will stay with us once they experience what our Boeing 777-200 aircraft and cabin crews offer,’’ the vice president said. "In the past, Asian and Middle Eastern carriers provided better in-flight entertainment and crew services, and operated newer airplanes than Western airlines. But that is not the case anymore.’’

He said American Airlines flies the latest airplanes, and their staff now speak many foreign languages and are trained in customer-oriented hospitality services.

"The U.S. airline industry was slow to learn in the past. But we are catching up and, in some cases, have caught up,’’ Ahern said. ``We have significantly improved in-flight hospitality and have well trained flight attendants and other crews. We are not just competing in price but also on quality of services.’’

With more than 500 new planes scheduled to join the fleet, including the Boeing 737 and Airbus A320 families, American Airlines is building the youngest and most modern fleet among major U.S. carriers, he said.

The vice president said that American Airlines’ international premium in-flight service is competitive, and better than what most airlines offer.

"From our onboard service standpoint, in-flight entertainment is important and what our flight attendants offer to our guests is also crucial,’’ he said. ``Three Korean flight attendants are onboard our Incheon-Dallas flight to provide more friendly, personal services. Additionally, our first- and business-class seats are fully equipped with latest individual setback entertainment and comfortable bedding.’’

Ahern pointed out that American Airlines’ extensive network of connections gives it an advantage.

"We have what Korean Air does not. Dallas is our headquarters offering hundreds of connecting flights to U.S. cities and destinations in Latin America,’’ the vice president said. ``Korean travelers can benefit from our service beyond Dallas. This is one more reason why they should fly with us.’’

Ahern outlined marketing strategies to attract both business and leisure travelers here.

``Business travelers are incredibly important to us, so we will make sure we spend lots of time with corporations. We will knock on their doors to promote what we offer including competitive rates and an extensive transit network in the U.S.,’’ he said. "For leisure travelers, we will pitch our attractive ticket prices and generous mileage program. Through our joint business with Japan Airlines, Korean travelers can also fly to many destinations in the U.S., such as Chicago and San Diego.’’

Merger with US Airways

In February, US Airways and American Airlines announced a plan to merge. The merger will make American Airlines the world’s largest airline.

Following the deal, which is expected to close later this year, the combined airline will carry the American Airlines name and operate more than 6,700 daily flights to 336 destinations in 56 countries.

Currently, American Airlines is the third-largest carrier in the United States, trailing United Airlines and Northwest.

"We believe that the merger will create a great deal of positive synergy for both organizations because only a few routes overlap,’’ Ahern said. ``We will be in a much better position to compete with our rivals. For Korean travelers, we will be more attractive because we offer more access and choices anywhere in the U.S.’’

American Airline employees are realizing that competition is not isolated to United and other U.S. carriers, he said. "They are waking up to the new dawn that we are competing with Korean Air, Emirates, Singapore and other international carriers. They are motivated to work hard and treat customers better. There have been tangible changes in American Airlines.’’

The vice president said the company will hire 1,800 new workers this year. ``We will employ people capable of speaking languages beside English. On top of the new, more talented workforce, the airplanes we operate and products we offer will also be up to date.’’

When asked whether American Airlines will establish a low-cost unit, Ahern said the company will continue to maintain its premium brand image.

"Despite the rapidly growing low-cost airline sector, we do not have a plan to set up a budget carrier,’’ he said. ``We are familiar with competing with low-cost carriers because we currently compete with them on 70 percent of our U.S. routes. We know how to cope with Jet Blue and Southwest.’’

The carrier will continue to offer premium services at low-cost through its current platform, the vice president said.

CSR activities

Ahern said American Airlines will introduce a wide range of corporate social responsibility (CSR) activities in Korea to serve the local community.

"One of the things that we most pride ourselves in is our involvement in communities. We are very active in cultural aspects, and it is something that we believe strongly in,’’ he said. ``But frankly, we haven’t spent a lot of time thinking about CSR activities in Korea because we are just trying to get the business started here.’’

American Airlines plans to expand its footprint in Korea by implementing an array of community service activities, the vice president said, stressing that the CSR spirit is embedded in its corporate culture.

In the United States, the carrier is deeply involved in a campaign against breast cancer, and extends financial and other support to thousands of children in poor neighborhoods to help them study and achieve success.

In China, the company plays a role in bridging the culture gap between the United States and China. In Japan, it participates in an initiative, started by the U.S. Embassy in Tokyo after the 2011 earthquake and tsunami, facilitating the transport of affected children to the United States so that they can study and live with American families.