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American Cancels Newcastle Service Before It Launches

American Airlines announced that it will cancel its planned-but-not-launched service from JFK to Newcastle, England.  The only reason to really care about this is that the US majors have placed a lot of their eggs in the international flight basket and the assumption was the international routes would save them.  It’s now possible that they have shifted so much capacity to international routes that they, too, are becoming less profitable than hoped.  This will be one of the major stories for 2006—whether the majors’ shift to international service will actually help them financially.

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