American Airlines moves to isolate O'Hare operations

NEW YORK (Reuters) -- In a move to improve on-time performance, American Airlines plans to take steps to isolate Chicago's O'Hare airport, currently a key hub, from the rest of its operations due to congestion at the airport.

O'Hare is a main connecting hub for both American and United Airlines, the world's two largest airlines.

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"Because of weather and congestion, (O'Hare) tends to under-perform the American system as a whole," Chief Executive Don Carty told airline analysts in New York on Tuesday.

Rather than fly from Chicago to New York and then to Dallas Fort Worth, another American hub, aircraft under a new schedule to start in November will return to Chicago after their initial destination.

"What we're doing ... is building a firewall between our operation and the rest of our network," Carty said. "So if there's a snowstorm in Chicago, it won't affect your flight from New York to Dallas. Or Dallas to Albuquerque."

American also will restructure its Dallas Fort Worth operations beginning October 1, adding new ground and connecting times, slowing the rate of arrivals and departures, and eliminating some morning flights.

American's plans suggest the airline will increase its dependability through the moves, Carty said.

Delays and cancellations have been increasing in recent years as the U.S. air travel infrastructure becomes increasingly overcrowded.

Recently the problems were increased by a labor dispute between United pilots and the world's largest airline, leading to the cancellation of tens of thousands of flights over the summer as its pilots refused to work overtime.

That dispute has been resolved, but Carty predicted the next couple of summers, the U.S.' busiest travel season, "are going to be ugly" before new air traffic control technologies kick in and begin to improve air travel in two to three years.

Carty also conceded that airlines as a group have over-scheduled the system. "Of course we over-scheduled," he said. "But we didn't do it together. It's a competitive business."

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