AA cargo looks to emerging markets, cool chains as Chapter 11 terms loom

AMERICAN AIRLINES is looking to emerging markets and cool chain opportunities as it trims flight schedules and warns 11,000 worker to brace for layoffs, reports Atlanta-area Air Cargo World.

Despite the industry's high hopes for smartphone shipments, recently appointed American Airlines Cargo president Kenji Hashimoto said: "There is no bow wave for the fourth quarter, no influx of orders."

As the company moves towards Chapter 11 restructuring, it hopes that headcount reductions can mitigate the costs of orders for 100 Boeing 737 MAX aircraft and 260 Airbus A320s in the pipeline.

"It will come as no surprise to hear that we're under-performing against budget, but I feel we are in a relatively okay position against the competition," Mr Hashimoto said.

The first of ten 777-300ERs enters long-haul service at the end of this year. These offer 30 per cent more cargo capacity than the 777-200ER. The first will be deployed from Dallas/Fort Worth to Sao Paulo, a destination he said was under-served.

Mr Hashimoto said the Middle East and Africa offer opportunities and there could be extra capacity for Latin America. "Our Latin American network is very strong - it's a bright spot in terms of premium product performance," he told Air Cargo World, adding that he had a eye out for cool chain cargo.

Mr Hashimoto joined the cargo side of American Airlines after three years as vice president of strategic alliances.

Of his new cargo role, he said: "It's very manually intensive in cargo compared with the highly automated passenger process, and takes a lot of phone calls and messaging. You have to have clear standardised operating procedures for how you deal with bookings and handling."