American to Add Two New South American Routes (Maybe)

Reports came out today that American would be announcing service to two new destinations in South America from their hub in Miami soon. The first, is Asunción, Paraguay. American has served Paraguay in the past; as recently as 2005, when they cut service that operated via Sao Paulo. The standard reasoning give was that the route wasn’t profitable, however the carrier also may have had a beef with a new (at that point) law passed in Paraguay requiring carriers to pay a 6% commission to travel agents on all tickets sold. With a market so marginal as Asunción, even a little increase in costs such as that may have been enough to push it under. However, indications are that the government will be relaxing the policy for American this time around.

The second destination planned is Cordoba, Argentina; which has never been served in the past. The service is supposed to be launched by November (according to a senior AA executive). Cordoba is a focus city for OneWorld partner LAN Argentina.

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