Air Transport World

American Airlines'.

American Airlines' agreement to acquire Reno, Nev.-based Reno Air for $124 million, followed by news that it is negotiating a marketing agreement with Seattle-based Alaska Airlines, signals its return to the West Coast and intra-California markets it abandoned earlier in the decade with the closing of its San Jose hub.

Reno, with hubs in Reno and San Jose, and American have had a relationship since 1993, under which Reno fliers earn miles in American's AAdvantage program. This proxy arrangement, while of benefit. apparently was no substitute for AA's own presence, according to Chairman and CEO Donald Carty.

"Our customers and corporate accounts have told us that they want an airline to meet all their travel needs. …

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