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 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 The writer of this paper stresses that the purpose of any costaccounting system is to provide current information about the total cost of manufacturing a product or performing a service. This paper analyzes in detail the strengths and weaknesses of traditional costaccounting (TCA) and activity base costing (ABC). TCA is a well developed method of estimating cost incurred while the ABC system is based on costs which are driven by factors other than product volume.
From the Paper "A problem may arise in the use of actual overhead costs. The problem stems from the fact that many of the elements of manufacturing are fixed costs, rather than variable costs. Fixed costs are those that tend to remain relatively constant from month to month. Examples of fixed overhead costs include the monthly salary paid to plant managers, depreciation, property taxes, and insurance on plant assets."
Abstract This essay determines the total production cost of a given situation and answers how the technique could be used in decision making of leisure centers or hotels.
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."
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 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 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 costaccounting is a part of managerial accounting: Whereas financial accounting is concerned with recording actual financial transactions, managerial accounting is concerned with the discovery of relationships in financial data. The author points out that one of the critical factors involved in costaccounting is the differentiation of fixed costs, which must be borne by a firm regardless of activity levels, and variable costs, which fluctuate according to activity levels, so that managers are able to construct break-even charts and other decision-making and control tools. The paper states that the three principal functions of standard cost systems are (1) identifying the actual costs of operation, (2) determining the achievement of the production operation, and (3) evaluating the performance of the production operation.
Table of Contents
Introduction
CostAccounting: Definition, Roles, Concepts, and Applications
Standard Costs Transfer Prices
Summary
From the Paper "Production costs are also considered in the contexts of full costs, direct costs, indirect costs, job costs, process costs, standard costs, joint costs, and others. These costing concepts are all a part of the cost accounting process. Each of these concepts provides the manager with a different perspective of costs. These different perspectives may provide a means of enhancing the efficiency of an operation, without damaging the integ?rity of the firm, even though most of the costs derived through the application of these concepts of costs will differ from the costs derived through the application of financial accounting concepts. The use of costs derived through the application of these managerial accounting concepts permits managers to make valid and rapid decisions on the basis of performance variances from managerial accounting cost factors or ratios."
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 discusses various accounting topics through a review of six newspaper articles. The paper outlines the accountant's role in an organization, provides an introduction to cost terms and purposes, and describes job costs and cost allocation. Performance measurement, compensation and multinational considerations are illustrated in this paper, as are the issues involved in inventory management and backflushing costing.
From the Paper "Key Company Assets Moving Offshore" proclaims the title of this recent article from the business section of The New York Times. A casual observer might shrug, but a student of accounting must turn a closer eye to this proclamation that American companies have been rapidly shifting more of their most valuable assets to tax havens, where the companies pay little or no tax on profits. What is so striking about this technique is that instead of simply moving their headquarters offshore, companies are also placing patents on drugs or ownership of corporate logos offshore, thus putting these "intangible assets" into tax havens as well. (C3)"
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. "
