What company did American Airlines buy?

In another transaction, American Airlines acquired regional carrier Air Tahiti Nui.

This week American Airlines revealed its plans for a new acquisition and expansion of the regional carrier network, Air Tahiti Nui, a young carrier that flies from Tahiti to destinations in New Zealand, parts of Asia, and Australia. The acquisition is expected to cost American Airlines $425 million, with the new acquisition allowing the airline to penetrate new routes across the South Pacific.

Air Tahiti Nui was established in 1998 and is at present fully owned by the government of French Polynesia and by some local investors from Tahiti. It uses only 5 wide-body aircraft, none of which are laid out for more than 15 destinations. Frequent flights: Its hub is the Faa’a International Airport in Papeete, on the island of Tahiti.

Although much smaller than the strategic players such as American, Delta, or United, Air Tahiti Nui serves a significant role as the only airline to directly link Tahiti and other South Pacific leisure destinations to key hubs in North America, Europe, Asia, and Australia. One of the world’s most iconic brands, it has cultivated a legion of loyal customers in the traveling leisure sector by providing service excellence and offering passengers welcome flower garlands, the symbol of Tahiti.

American Airlines has always provided flight services to Tahiti and other islands of the South Pacific through codeshare with Air Tahiti Nui or in a similar partnership with various regional carriers. However, the purchase provides America with the valuable routes and slots that the merger cannot guarantee, along with eliminating a future competitor. American also obtains Air Tahiti Nui’s experience and expertise in flights in a specific area with problems like volcanic ash.

The takeover speaks volumes about America’s drive to continue to grow in the international market despite the current global situation. COVID-19 has dealt with the airline industry severely, and Americans had losses of more than $8 billion in 2020. The airline aims to regain the lost ground to capture a bigger slice of the cake from the long-haul and vacation travel markets in the next world once people start flying again more frequently.

Despite taking full control of the airline after the agreement was signed, American did agree to preserve the Air Tahiti Nui brand, destinations served, and aircraft paint scheme. That likely stems from the fact that those in charge of the airline probably wanted to maintain the existing popularity of the regional carrier in the regions it operates rather than mislead leisure travelers. Americans may choose to shut down reservation systems and fully integrate frequent flier programs progressively in the future.

The acquisition does bring with it questions of how America will control air travel to and from Tahiti with the lack of a rival on routes that are primarily holidays. The lack of consumer choice will be looked at critically by regulators of technology in the U.S. and other parts of the world. American continues to assert that the takeover will not affect the price much due to competition that already exists from connecting flights through hubs such as Los Angeles.

For now, American Airlines customers are likely to have more choices for obtaining award seats on a trip to picture-perfect South Pacific vacation destinations with miles accumulated through the airline’s credit cards and frequent flyer programs. However, the people of Tahiti will still be able to have a reputable and established local airline for them to be connected to the world. They foresee higher returns in the long run from the takeover, even though some problems persist in the airline industry even during this COVID-19 pandemic.

The American Airlines Group remains keen on its acquisition strategy to grow its network profitably. Despite the continuous concentration in North America and the primary and secondary European and Latin markets, this purchase confirms America’s readiness to make strategic investments pointing to serving high-revenue'sun and fun’ leisure travelers in secondary and even tertiary markets such as Tahiti. For a carrier that boasts of catering to the world, providing connectivity across the serene South Pacific complements the global nature of its operation.

Book your American Airlines ticket now and experience comfort and reliability. Call +1 833-902-2090 to speak with our travel experts.