American Airlines: A Brief History

According to MBASkool (2015), a SWOT analysis has been completed to show some of the opportunities and threats that American Airlines faces. They are listed as follows:

United Airlines and Continental Airlines, two major airlines companies, agreed to a merger that would create the world’s largest airline. Such important deal has a lot of problems to be dealt with, from technical, for example how to put the companies databases together, to more fundamental, like how the company should be ruled.

In 2015, it showed in the record that the number of employees American Airline has was 110,300 employees within different departments such as flight attendants, and ground workers and pilots. With this huge number of workers, they need a representative to make their rights will be claimed. That why American Airline has a voice with a different labor unions such as Association of Professional Flight Attendants (APFA), Air Line Pilots Association (ALPA), Transport Workers Union-International Association of Machinists alliance (TWU-IAM) and Allied Pilot Association (APA). Therefore, the airline will be forced to consider and listen to the labor unions and their demands to avoid strikes that can damage the reputation of the company.

Southwest Airlines (SWA) begins in June 18, 1971, when SWA first operated a first airline consul between Houston, Dallas and San Antonio. Rollin King and Herb Kelleher are the founders of the company. The end of 1971 SWA immediately began to expand.

Working beneath the American Airlines name, a standout amongst the most perceived brands on the planet, the consolidated aircraft will have a vigorous worldwide system and a solid money related establishment. The merger will offer advantages to both carriers' clients, groups, workers, financial

American Airlines, Inc. (AA) is a major airline of the United States. It is the world's largest airline in regards to accumulated passenger miles. American Airlines took off on April 15, 1926 when Charles Lindbergh flew a bag of mail from Chicago to St. Luis in a DH-4 biplane. A year later the first passenger flight flew from Boston to New York, heralding the real first passenger airplane travel by American Airlines. A subsidiary of AMR Corporation, the head quarters of American Airlines is in Fort Worth, Texas adjacent to the Dallas/Fort Worth International Airport. American operates scheduled flights throughout the United States and flights to Canada, Latin America, the Caribbean, Europe, Japan, the

Delta Airlines have transformed over the decades. They started out as a crop dusting company, blossomed into an airline company, fought litigations, went bankrupt, then resurrected it and merged with Northwest Airlines to become one of the biggest airline companies in the world. Their aircraft, operations, and cities and countries that they service have transformed and blossomed as well.

On February 14, 1997, days before one of the busiest travel times and holidays of the year, thousands of American Airline pilots prepared to walk off their jobs if a deal wasn't made by midnight between the Allied Pilots Association and American Airlines. Passengers worried that they would be stranded and out of money, began to re-book their American flights with other airlines and making other arrangements for travel. Although negotiations were still in progress, American began to prepare for the strike that loomed overhead. They braced themselves by canceling all international flights and several domestic flights which cost them millions in profits. After hours of bargaining with little progress, the Allied Pilots Association called a strike

Delta Airlines originally started in 1924 as, Huff Daland Dusters, the first crop-dusting company in existence (History, n.d.). To avoid the lulls of winter, when no crop dusting was performed in the U.S., Huff Daland extended its dusting services to Peru (Hoogerwerf, 2010). Peruvian Airways, a Pan-Am subsidiary, began flying both passenger and air mail contracts for Huff Daland in its first entry into the passenger market (History, n.d. and Hoogerwerf, 2010). Due to the unstable political environment in South America, this portion of the company was sold, and the U.S. portion of Huff Daland Dusters was bought from its parent company (Huff Daland Manufacturing Company) by a group of investors with C.E. Woolman placed as the vice president and manager of operations (History, n.d.). During this buyout from its parent company Huff Daland Dusters became rebranded as Delta Air Service. (History, n.d.).

American Airlines is looking to expand its market to more wealthy consumers by offering an excusive line of aircraft consisting mostly of first class and business type seating. This new model will be labeled under the title “Elite” and would market routes to and from major city hubs during heavy business traveling hours. American Airlines will position this service as the, “Black Jet” since that would be the standout feature of the aircraft. American can take advantage of its existing market base along with its frequent fliers to sell the experience of a flight experience beyond maximizing passengers. The target motto would be a “flight redefined.” American Airlines Elite would target business, first class, and frequent flying travelers.

There are companies that are laid out in various parts of the word. The company that I had chosen the AMR Company, the industry it operates in is the Airlines. The AMR Company operates in the Airline industry and its home country/domestic environment is in the Fort Worth, Texas of the USA. AMR (parented of American Airlines) was founded back in the 1920’s by a young aviator named Charles A. Lindbergh who flew mail in DH-4 biplanes and eventually form into a modern-day American Airlines. In November of 2007 the AMR Corporation had planned to divestiture the American Eagle to its own regional carrier in 2008.

American Airlines (American) made four fundamental changes to its rates. First, it moved to a four-tier rate structure; American offered first-class rates and three tiers of coach: full-fare, 21-day advance purchase and 7-day advance purchase. Overall, it expected to reduce coach fares by 38% and first-class fares by 20% to 50%. Though full fare coach prices dropped by about 38%, advance-purchase fares dropped by 6% when compared to the advance purchase tickets already being offered. Through this fare structure, American also eliminated deep discount tickets. Second, American eliminated the negotiated discount contracts of many large

Southwest Airlines began operations in 1971, and has remained profitable after 44 years. The company has experienced challenges such as high fuel prices, a recession, and even the tragedy of 9/11. Their strategy is unique and one-of-a-kind. They have innovated the airline industry by keeping costs low while not sacrificing quality or punctuality.

In 1946, American Airlines established its maintenance and engineering bases in Tulsa, Oklahoma. In 1953, American Airlines pioneered nonstop transcontinental service across the across the U.S. with the Douglas DC-7. During 1957, American opens the world’s first special facility for flight attendant training, the American Airlines Stewardess College, in Dallas/Fort Worth. During January 1959, American Airlines introduces the Lockheed Electra, which is the first U.S.-designed turboprop plane. On December 3, 1964, American Airlines hires Dave Harris, the first African-American pilot for a commercial plane. In January 1970, American Airlines merged with Trans Caribbean Airways, gaining Caribbean routes. In 1974, American Airlines released their one-step automated check-in system, greatly increasing efficiency within the company for checking passengers in and getting them on to the correct planes. Then in 1975, American Airlines began marketing SABRE (Semi-Automatic Business Research Environment), which is a computer reservation system that was developed to automate the way American Airlines booked their reservations to traveling agencies in the U.S. After this, in 1979, American Airlines relocated their headquarters from New York City to Dallas/Fort Worth Texas, where it still resides today. On May 1st, 1981, American Airlines introduces AAdvantage®, the first airline loyalty program. On August 1st, 1983, America Airline West commences operations in Tempe, Arizona.

Charles Lindbergh flew the first American Airlines flight on April 15, 1926 carrying U.S. mail from St. Louis, Missouri to Chicago, Illinois (American Airlines). American Airlines flew United States mail routes for about eight years until C.R. Smith and Donald Douglas created the DC-3 plane that would change the airline industry. The DC-3 flew in service from New York to Chicago (American Airlines). Over the years the company began to grow what it is today. American Airlines grew from engineering the DC-3 to the DC-7 and eventually created new flight planes that would be able to take passengers all over the United States and eventually overseas. American Airlines was the first airline to create a specialized flight attendant training program (American Airlines). The airline knew the importance of keeping its passengers comfortable during their flight. Finally, on October 16, 2015 U.S. Airways flew its last flight and on October 17, 2015 U.S. Airways and American Airlines began to operate under one company.