Abstract This paper discusses power and governance at AmericanAirlines. It looks at the company's leadership, the power structure at AmericanAirlines and losses to the airline industry and to AmericanAirlines starting in 2001.
Abstract This paper is a strategic audit of AmericanAirlines, using financial reports for 2001 for the AMR corporation. The paper examines the impact of 9/11. The paper deals with problem identification, sub-problem identification, internal and external strategic analysis, four alternatives to solve the problem and finally, selecting the most appropriate and creating an execution plan for the strategy chosen.
From the Paper "With the exception of a few carriers such as Southwest Airlines, many of America's airlines have been losing significant amounts of money. According to AMR, filing with the U.S. Securities and Exchange Commission in fiscal year ?, American Airlines parent company, AMR, reported a net loss of billions on total revenues of ? billion. AMR's net loss was ? percent meaning the airline lost ? cents for every dollar of revenue for the year."
Tags: Strategic Audit, AmericanAirlines, AMR, SEC, 10-k, terrorist attack, 911, Southwest Airlines, Bankruptcy. financial reports for 2001, Problem identification, sub-problem identification, internal and external strategic analysis, SWOT analysis, 4 alternati
Abstract The paper provides an analysis of the airline industry in the USA and discusses its attractiveness from an economical point of view. In particular, the paper focuses on the two main competitors of AmericanAirlines, Delta Airlines and Northwest Airlines and their advantages. The paper then looks at the competitive advantages of AmericanAirlines and the challenges and risks facing the company. The paper concludes with recommendations for the company to improve its strategies and thus ensure it maintains its position of market leader.
Outline:
Executive Summary
Analysis of the Industry
Analysis of Competitors
Firm Analysis
Recommendations
From the Paper "The airline industry in the United States of America is a developed one and there is the possibility of further development. American Airlines is the biggest air carrier in the US and has numerous strategic advantages, such as the capacity to take millions of people to five continents on a very well organized schedule, proving them with all the desired comfort using safe planes and a well organized route network. The company must nevertheless face the competition represented amongst others, by Delta Airlines and Northwest Airlines. The major competitive advantages of these companies is represented by their capacity to take people to continents where American does not fly, such as Africa, their efficacious organization and their fare policies. "
Abstract This paper explains that AmericanAirlines has continued to grow in an industry, which has been characterized by many start-ups and failures. The author points out the way AA has emerged as an industry leader, competing effectively on a global scale. The paper evaluates the planning function of management at AmericanAirlines.
From the Paper "It is not a good time for any of the airlines although passenger loads are at an all time high and projections are good for passengers for the summer, fuel prices are also way up and there is a price war between all of the carriers driving costs up and profits down. American Airlines has expanded rapidly in both domestic and international markets building a reputation for dependable and quality service. American Airlines has managed to grow in an industry that has ..."
Abstract This paper looks at the performance and income of AmericanAirlines and Delta Airlines and shows how, while AmericanAirlines has a far superior track record to that of Delta Airlines, Delta has significantly superior gross profit. The paper then relates that AmericanAirlines has not maintained dominance, but Delta's net income fared far worse than that of AmericanAirlines. Figures that show a universal decrease in share valuation are also examined and the very real problems the airline industry is currently facing are illustrated. In addition, the paper compares which company is more liquid, solvent and profitable and which is the better investment choice. The paper notes that the airline industry in general is not necessarily the best choice for investment today.
Outline:
The Strength of the Two
Strengths in Particular Areas
The Trend of Dominance
Industry Comparisons
The More Liquid, Solvent, and Profitable Company
The Conclusive Choice of Investment
From the Paper "American Airlines has a far superior track record to that of Delta Airlines. Their assets have experienced relatively continuous growth, however were reduced slightly in '07. This reduction however is sharply contrasted by the income of the company. The company's gross profit has remained consistently high, never dipping into the red over the past four years. The company's net income, while at $504 Millions in '07, was positive in '06 as well, and while the company was negative between '03-'05, the numbers never went below -$1,228, in comparison to Delta's low-point of -$6,203 Millions."
Abstract This paper explains that AmericanAirlines has always been one step ahead in its marketing and gimmick techniques. It mentions that AmericanAirlines was the first airline to offer a VIP lounge service and discusses the VIP AAdvantage service in detail.
From the Paper "Originally the aviation industry had very few strong advocates, and C.R. Smith wanted to do something to show his appreciation, so he created the "Admirals" Club? which was for those individuals and friends of the airline that he called "Admirals". Not long after, other airlines followed suit, and nowadays the Admirals? Club allows membership for anyone over the age of 18 and varying on their frequent flyer, AAdvantage status."
Abstract This paper uses AmericanAirlines as an example to identify the ethnicity issues that affect workplace interaction. It shows how AmericanAirlines is an organization that is concerned about their employees and offers programs to help interact both ethnic and diversity in the workplace.
From the Paper "As you enter the Chicago O?Hare airport to fly with American Airlines, you will notice men, women, African-Americans, Native-Americans, and various nationalities all working together. The American Airlines work with those who are handicapped as they furnish wheel chairs and baggage men to help with their luggage. Diversity and ethnicity in the workplace is essential in today's world. American Airlines care about their employees regardless of their race, gender, ethnic background, religion, or age."
Tags: religion, age, ethnicity, gender, race, employee, interaction, company
Abstract This paper takes a brief look at what characterizes AmericanAirlines and the tactics they will have to employ if they hope to survive their current economic situation. This paper also takes a look at the reluctance of Americans to fly as a result of 9/11 and other terror attacks.
From the Paper "The airline industry is characterized by very complex pricing dynamics, depending on travel distance, type of traveler, and domestic and international flights, to name a few of the many factors that determine the degree of price elasticity or inelasticity (Air travel demand elasticities: Concepts, issues and measurement). For long-haul international business travel, demand is not sensitive to fare changes because there are few close substitutes. On the other hand, long-haul domestic business travelers have much higher elasticities than international business travelers. Telecommunications has become more acceptable as a substitute in domestic markets due to common culture, laws, contracts, etc. Likewise, international leisure travelers have greater elasticity than do international business travelers. These consumers are more likely to either postpone their trips in response to higher fares or seek locations that are not as expensive. "
Abstract This paper determines the core problems of AmericanAirlines in the aftermath of the September 11th attacks. While the company seemed to be suffering from a liquidity shortfall, data suggests that the company problems were due to the overall crisis sweeping through the industry. The paper also examines certain major issues involving management, competitiveness, and effectiveness, which resulted in the replacement of the company's executive officer.
Background
Challenge
Problems
An Outdated Business Model
Inadequate Location Planning
Notorious Capacity Planning
Adverse Marketing and Consumer Reorientation
Outcome
Transformation
Reducing Labor Costs
Increasing Efficiency and Raising Productivity
From the Paper "For the airline industry as a whole, September 11th was not only a change ? it was a devastation for capital models, marketing practices, and operations techniques. Reducing costs and increasing productivity became priorities. When he woke up on September 12, 2001, Donald Carty, CEO at the time, should have probably realized that he had a new business to run. Extra issues had come up that had to be resolved and future plans were uncertain. It was a brave new world out there and only those, who were quick with changes, could retain profitability in the long run. AA started off fairly well. Ten days after the crashes, AMR Corp. announced plans for 20,000 layoffs in American, in addition to cuts in schedule amounting to 20% of flights . Furthermore, the airline also closed almost all of its city ticket offices and six of its fifty Admirals Clubs, while Carty declared that he will forgo his $10 mln. pay and bonuses for 2001, in order to help the carrier with "the tremendously difficult challenges ahead" ."
Abstract This paper reconstructs the crash of AmericanAirlines Flight 965, which departed Miami International Airport, Miami, Florida, in route to Alfonso Bonilla Aragon International Airport in Cali, Colombia on the night of December 20, 1995. It examines in detail the human and environmental factors that caused the events. The paper lists suggestions made by the National Transportation Safety Board to improve flight safety and prevent such accidents in the future. In conclusion, however, the paper point out that the overwhelming majority of these changes have not been implemented because of the politics involving admitting fault and determining which party (or parties) was ultimately responsible. Instead of focusing on changes that have the potential to positively impact the greater good, the legal departments of the different companies involved must actively work to shield themselves from potential lawsuits from victims' families.
Table of Contents:
Introduction - Factual Account of Events
Environmental Factors
Human Factors
Hardware
Software
Strange and Unusual Occurrences
NTSB Recommendations and Recent Changes
Appendix (includes diagrams and photographs)
From the Paper "The environment on American Airlines flight 965 to Cali, Columbia was in a state of constant change. Many factors affected the flight situation and helped provide a setting without situational awareness. Several environments constituted the flight. At times, it was one of confusion, one of pressure because of a time constraint, one with lack of equipment in Cali, unawareness of terrain, inadequate preparation, communication breakdowns, and lack of pilot experience."
Abstract This paper examines how, with the advent of the Internet, smart companies have been using the unique advantages that this powerful medium offers with "e-business" emerging as the new paradigm of performing business over the Internet. In particular, it looks at the development of the airline business in e-commerce and compares the the e-strategies of AmericanAirlines and Southwest Airlines.
Outline
Introduction
The First Steps
AmericanAirlines E-Strategies at AA
Southwest Airlines E-Strategies at SW
Markets and Pricing Structure of AmericanAirlines (AA) and Southwest Airlines (SW)
Cost Structures of AmericanAirlines and Southwest Airlines The Airline Offering the Best Value
Conclusion
From the Paper "The development of the airline business in e-commerce started in the early 1980s, and this was when the academics and consultants found out that a few managers had developed their strategy around IT applications, though the move may have been inadvertent. The first move was by American Airlines and United Airlines with their reservation systems. In other industries, American Hospital Supply had developed an online ordering system, and Frito-Lay had developed a handheld device for the field staff. During the 90s, the concentration was on re-engineering, and this was a concentration on technology. Towards the end of the 90s, came the predominance of e-commerce or e-strategy. The concentration then shifted on to judgment of how Internet affected the business."
Abstract This paper provides an analysis of the control the airline pilots union has over the airline industry. The paper discusses the purpose of ALPA and its members. It explores the efforts made by Delta CEO, Leo Mullins and AmericanAirlines CEO, Donald Carty to persuade the government to reform the Railway Labor Act. The paper explores the possible future of the ALPA and the airline industry. The paper uncovers several reasons why ALPA has such a stranglehold on the airline industry including; federal labor laws, a shortage of qualified pilots, regulations that govern the hiring and firing of pilots and the threat of loss of seniority that pilots face.
Table of Contents:
Introduction
Description and Purpose of ALPA
The Reasons for the Stranglehold
The Railway Labor Act
The Future of ALPA
The Future of the Airline Industry
Conclusion
From the Paper "In recent years the amount of power that the ALPA has over the airlines has come into question. There are several reasons why this stranglehold exists including; federal labor laws, a shortage of qualified pilots, regulations that govern the hiring and firing of pilots and the threat of loss of seniority that pilots face. The following paragraphs why these factors contribute to the stranglehold that the Airline Pilot Association has on the airline industry."
Abstract This report focuses on how newer, smaller, and more technologically advanced airlines like JetBlue are fulfilling their mission in providing outstanding customer service. Weaknesses in the airline industry have become more than apparent. Moving into the 21st century, commercial aviation has been in a steady decline. The paper shows that the major airlines might have felt as though the new, low-cost carriers were just a passing fad and that, by comparison, the major airlines would continue to offer a superior service. The papers shows, however, that smaller carriers such as JetBlue have demonstrated that they can operate more efficiently and be more cost-effective by having the latest technology in their business model, information and infrastructure systems, airplanes, and terminals.
From the Paper "Furthermore, convenience has been declining of late; congestion and flight delays reached record levels before September 11, and the additional security measures now in place have added further difficulties for travelers.? (Costa, Harned, & Lundquist, 2002) Through all of the current turmoil in the industry, smaller commercial carriers have become the epitome of success. Southwest and JetBlue for example have been consistently turning a profit and consumers have confirmed their support for the brand names."
This paper addresses the current environment in which the Americanairline industry functions through examining Michael Porter's five forces model, a business analysis of the environment through the PESTLE model, and a basic SWOT analysis.
3,150 words (approx. 12.6 pages), 10 sources, 2002, $ 115.95
Abstract This paper addresses the current environment in which the Americanairline industry functions through examining Michael Porter's five forces model, a business analysis of the environment through the PESTLE model, and a basic SWOT analysis. The company United Airlines is addressed as the company of interest in this respect.
Tags: BUSINESS / CASE STUDIES, united airlines porter
Abstract This paper discusses the effects of the personnel cost-cutting measures employed by major airlines in the United States and their relationship to aircraft safety. The research focuses on four factors - employee layoffs, increase on employee workload, cutting employee benefits and cutting employee training. The paper presents a survey on aviation pilots at AmericanAirlines (AA).
Table of Contents:
Abstract
Introduction
Background of the Problem
Statement of the Problem
Limitations
Delimitations
Definition of Terms
Acronyms
II Review of Related Literature Hypothesis
Introduction
Employee Benefits Cost Reduction and Wages Cutback
Employee Lay Offs
Increase in Employee Workload
Employee Training
Commercial Aircraft Safety
III Research Methodology
Introduction
Research Design
Research Model
Survey Population
Sources of Data
The Data Gathering Instrument
Pilot Study
Instrument Pretest
Distribution Method
Instrument Reliability
Instrument Validity
IV Results
Introduction
Demographics
Pilot's Awareness of Company Decision and Policies
Pilot's Awareness about AA's Cost Cutting Measures
Pilot's Perspective on the Effects of Cost Cutting
Measures of AA to Commercial Aircraft Safety
V Discussion
Introduction
Pilot's Awareness of company Decision and Policies
Pilot's Awareness about AA's Cost Cutting Measures
Pilot's Perspective on the Effects of Cost Cutting
Measures of AA to Commercial Aircraft Safety
Summary
VI Conclusion
VII Recommendations
Appendices
From the Paper "Since, 1998 the Government Accountability Office (2004) (GAO) of the United States had reported that majority of the leading airline industries have a difficulty of acquiring revenue and profit increase because of the growth of Low Cost Airlines (LCA) The proliferation of Low Cost Airlines has caused a strict competition in terms of domestic market share due to the relatively low prices that were offered and the relatively low cost cutting measures of LCA. Hence, it is reported by GAO (2004) that the operation costs of LCA have even increased to $1 Billion or 10% of its total operation costs. In effect of this, the research inferred that such an effect had a significant impact in terms of how passengers in general compare and view LCA to Big Airlines."
