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Tuesday, September 02, 2008
American Airlines Asks to Delay Service to China
Associated Press
American Airlines has asked federal regulators for permission to delay its launch of new nonstop service between Chicago and Beijing for a year, citing the high price of jet fuel and other obstacles. American, the largest U.S. airline, filed its request Friday with the Transportation Department, making it the latest in a line of U.S. carriers seeking to delay China service.
The Chicago-Beijing flights were scheduled to begin next April 9. American, a unit of Fort Worth,Texas-based AMR Corp., asked the Transportation Department for permission to begin the flights instead on April 4, 2010.
In asking for the delay, American cited high fuel costs, the economy and "the extraordinary adverse market and operating conditions affecting the entire airline industry."
U.S. airlines are expected to post multibillion-dollar losses this year as they battle high fuel prices and a weakening U.S. economy.
On Tuesday, however, oil prices settled at $109.71 per barrel, down $5.75 from Friday's closing price of $115.46, on news that Hurricane Gustav caused only minimal damage to oil rigs in the Gulf of Mexico.
Federal regulators have approved previous requests for delays in China routes from United Airlines parent UAL Corp., US Airways Group Inc. and Northwest Airlines Corp.
American already flies between Chicago and Shanghai. Last year, American won the rights to add the Chicago-Beijing route.
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