American Airline

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.

How has SWA (a) responded to the “Shuttle By United” initiative (half page 5 points); and (b) what assessments can be made about SWA’s market and financial position on competitive routes based on 1994 4th quarter results (half page 5 points)?

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

American Airlines is a major airline of the United States. It is the world’s largest airline in passenger miles transported and passenger fleet size; second largest, behind FedEx Express, in aircraft operated; and second behind Air France-KLM in operating revenues.

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.

In 1934, American Airlines, was founded and later incorporated in October of 1982. In 2013 American merged with US Airways. Together they serve more than 350 cities in over 50 countries and operate a fleet of approximately 900 aircraft. American Airlines is also members of oneworld alliance. The oneworld alliance group fly to more than 1,000 destinations around the world. In addition to their passenger service, American operates Air Cargo services. They are one of the few airlines carriers that operate both passenger and cargo services. American offers an AAdvantage frequent flyer program.

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.

Currently 51.8% of United’s income is generated through its international fleet, and 48.2% is generated within the domestic market.[iv] United Airlines is headquartered in Elk Grove Township, Chicago and operates 3,568 daily departures from 31 countries, which includes 225 domestic and international cities. The firm’s main hubs are located in Los Angeles, San Francisco, Denver, Chicago, and Washington, D.C.

The airline industry is greatly influenced by the the travel and tourism trends across the globe. The World Travel and Tourism Board states that the the level of tourism is likely to grow even as the years progress. The growth in the level of tourism is expected to grow at a level of 4.5 per cent annually. This is expected to continue upto 2017. Thus the organization should fully prepare it self and take over the tourism market.

American airlines is a corporation that exhibits all of the characteristics of a firm in an industry where good tactical management is the key to success. This company and its regional airline partner American eagle serve almost 250 cities around the world and operate more than 3600 daily flights. Its goal is to provide safe, dependable and friendly air transportation along with related services, making a great effort to transform any experience into a positive one. All of the services that this company has and the image that they are trying to keep in every day activities make each day an inevitable challenge for its employees.

American Airlines Group (AAG), headquartered in Fort Worth, Texas, is largest airline company in the world by fleet size, revenue, number of destinations served, and scheduled passengers-miles flown. Operating a total of 6,700 flights daily, while utilizing over 900 aircrafts, American Airlines flies to approximately 350 destinations in 50 countries. Though AAG’s revenue comes from many sources, including airline ticket sales, cargo, baggage fees, credit card fees/interest, and in-flight purchases, ticket purchases provide their highest source of revenue. Operating in both Mainline and Regional outlets, to major, secondary, and tertiary airports, AAG gives all customers the opportunity to fly virtually anywhere they desire. One notable event also affecting production efficiency, as well as other economic ratios from 2013-2016, was their $11 Billion merger with USAir on December 9th, 2013.

With 1988 operating income of $801 million on a revenue of $8.55 billion, American Airlines, Inc. (American), principal subsidiary of Dallas/Fort Worth-based AMR Corporation, was the largest airline in the United States. At year-end 1988 American operated 468 aircraft on 2,200 flights daily to 151 destinations in the United States, Bermuda, Canada, Mexico, the Caribbean, France, Great Britain, Japan, Mexico, Puerto Rico, Spain, Switzerland, Venezuela, and West Germany.

American Airlines was founded in the 1930’s, under the name of American Airways, after acquiring 80 small airline carriers (Koenig 2011), mainly used for mail services. Charles Lindbergh was noted as flying the first American Airlines flight, which carried mail from St. Louis, MO to Chicago, IL (American Airlines 2016). After nearly 10 year of flying mail, the name was changed to American Airlines, and became the first airline to fly passengers from New York to Chicago, in a Douglas DC-3; this was the “plane that changed the entire airline industry, switching revenue sources from mail to passengers (American Airlines 2016). American Airlines continued to revolutionize passenger flight service, by offering non-stop transcontinental flights across the United States in 1953. In 1981, American Airlines joined other major airlines in the hub-and-spoke system, and created their first hub at Dallas/Fort Worth International Airport, the same location as their headquarters. They expanded to new hubs throughout the 1980’s to other cities throughout the United States, Europe and Japan.

Airlines make money by carrying passengers and cargos. In this paper, it’s been stressed only to the passengers. Rebanking or scheduling is not a foreign word to the American airline industry. Airlines had been using banked scheduled since 1980 to 9/11 terrorist attack. After 9/11 airlines, changed to rolling hub or continues hub. This system lowered the operating costs, and also dispersed the airport activity and workload. Airports did not have congestion problems, passengers didn’t have to run to catch flights, and they had more layover time, which was bad and uncomfortable in passenger’s perspective. American, Delta and United few months ago started banking the flight schedule. That’s why they are using the term ‘Re-banking”. So far this system has brought tremendous surprises to the airlines industry. It’s so far win-win situation to passengers and to the airline. Passenger could make it to the destination soon and airlines generate more money than ever. Jansen (2015) suggested that American airline expected to increase revenue $200 million (para 7).

Profitability ratio Earnings Per Share Book Value per Share Profit margin on sales Return on assets Return on shareholders’ equity Return on Investment: DuPont Model (ROI) Liquidity Ratio Current ratio Quick ratio (acid test) Working Capital 2009 2008 2007