...American Airlines is the most profitable and the biggest airline in the USA, which became the most influential and greatest airline in the world in 2013 after the merger with US Airways. The company transports the highest quantity of passengers per year. The airline serves for more than 330 million passengers every year and owns about 655 aircraft, which fulfill various types of transportation – passenger and cargo ones. The headquarters of the airline is situated in Ford-Yort not far from the international airport in Dallas. American Airlines makes flights about the US and fulfills international flights to South America, Europe, Japan, India and China. It is supposed to be the second most profitable airline in the world after Air France-KLM. The history of the company dates back to the first half of the 20th century and started from 1926, when more than 80 carriers decided to unite into the single company called American Airlines. In 1930 the airline was already serious enough to make flights between the biggest cities of the US and its fleet consisted of wooden planes and metal planes Ford Trimotor. It does not worth mentioning that in the War time more than the half of the company’s aircraft was used for the military purposes and it was World War 2 which maintained the development of technologies and the quality of aircraft. The post-war period is characterized with the rapid growth and further development of American Airlines. It was one of the first airlines which...
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...companies that I chose to research that has aq are American Airlines and US Airways. On January 7, 2014 both airline announced the $17 billion merger that created the world’s largest airline, which is a position that American Airlines once held years ago until a wave of mergers and consolidations in the airline industry over the past few years. It plans to operate nearly 6,700 daily flights to more than 330 destinations in more than 50 countries. The strategy that led US Airways and American Airlines to merge was one of mutual benefit. In 2012, US Airways expressed interest in taking over AMR Corporation, which is the parent company of American Airlines. In March, AMR’s CEO Tom Horton said that the company was open to a merger. Under Chapter 11 bankruptcy protection, American Airlines had been looking to merge with another airline. In my opinion, I believe that this merger was a wise choice because the merger could possibly yield more than $1.5 billion a year in added revenue and cost savings to the airline. Stakeholders of AMR would own 72% of the company and US Airways would own the remaining 28%. Both airlines stated that there would be no lay-offs and have the major support of several labor groups that faced an uncertain future after AMR Corporation filed for bankruptcy in 2011. Shares of the combined company rose from 2.7% to $24.60 on their first day of trading on the Nasdaq Stock Market. The new American Airline has 600 jetliners on firm order, which should provide...
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...Che Guevarra Labor Laws and Unions American Airlines Background American Airlines (AA) history goes back to 1926 when a young aviator named Charles A. Lindberg started air routes to transport mail between St. Louis to Chicago. Lindberg seek the help of other aviators and expanded to other types of types of services such as transport of foods. Later on under the name of American Airways, Lindberg acquired and organized other small airlines. The small airlines were mostly independent carries and they all were branded under American Airways. Throughout the decades AA participated in the development of our current mail systems and play important parts in the American conflicts such as World War II, where AA turned their fleet to the military, Air Transport Command, to include their air crews. AA has been always been reinventing itself offering new services, keeping itself with aviation technology and by introducing new customer services. It innovated with services like magnetronic reservoir to keep track of available seats. AA was the first to offer nonstop transcontinental service and later on the first to offer coast-to-coast jet service. They also introduced a Family Plan to give discount air fares to traveling families. AA attention to customer service introduces the first flight attendant college and the AADVANTAGE travel awards program. AA was the first airline to use electronic ticketing and it was one of the first airlines to go use online ticketing. Currently, AA...
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...Southwest Airlines Research Report Tommy Best - Jessica Johnson - Adam McCormick Laura Monday - Evvan Tolly - Jessica Wirth Mary Wrenn ADV 340 - Dr. Childers - Fall 2009 Table of Contents Industry Overview Introduction....................................................................................................................................................................................................................... 1 History............................................................................................................................................................................................................................... 2 Size of Industry.................................................................................................................................................................................................................. 2-3 Stage in Product Life Cycle.................................................................................................................................................................................................. 3-4 Seasonality......................................................................................................................................................................................................................... 4 Growth Potential/Forecasts..........................................................................................................
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...organization. American Airlines (AA) and the transportation workers union (TWU) are the selected organization and company. Included information, background information on American Airlines, along with history of TWU at AA, legal issues, and obstacles that AA has encountered with TWU. AMR Corporation, the parent company of American Airlines, Inc. and AMR Eagle Holding Corporation filed in November 2011 a voluntary petition for Chapter 11 reorganization. To achieve a cost and debt structure that was industry competitive for long-term viability. There are various unions associated with the airline industry, the one chosen to discuss in this paper is the transportation workers union. TWU has 114 autonomous locals representing more than 200,000 members in 22 states around the country. As part of the Chapter 11 reorganization of AA the initial announcement that as many as 11,000 workers may be let go at the Fort Worth-based airline. The most recent announcement from AA is that approximately 4,400 mechanics, store clerks, and ground crew members of TWU will be part of a lay off. There are seven TWU workgroups representing approximately 24,000 employees at American Airlines. As part of the strategic and collective bargaining between the Transportation Workers Union and American Airlines the number of job cuts decreased drastically by development of an early retirement option negotiated between the two groups. It is clear that the reorganization of American Airlines is not complete;...
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...------------------------------------------------- American airlines leadership American Airlines Leadership American Airlines has a very unique history being the first “major airline” in the United States. The original name of the company was American Airways, which was conceived through the acquisition of 80 different airlines in 1930. The smaller airlines that were acquired included, Southern Air Transport in Texas, Southern Air Fast Express (SAFE) in the western United States, Universal Aviation in the Midwest, amongst a few others. With the airlines working under one name they were able to provide a much simpler way to travel and like many early carriers then, American earned it’s the most by carrying U.S. Mail. By 1933 American Airways operated a transcontinental route network serving 72 cities. In 1934 American Airlines was created by E.L. Cord who acquired American Airways and renamed it. The new owner, E.L Cord, hired C. R. Smith a Texas businessman. Smith began to work Donald Douglas in a project where they would pioneer a new phase of airline industry. Smith and Douglas worked and developed the DC-3, exclusively for American Airlines. This new plane was known as the flagships and the American Airlines’ DC-3 allowed for the company to be made the first airline to be able to operate a route that could earn a profit solely by transporting passengers, instead of relying solely in mail transportation. American Airlines was not only the first to profit from passengers...
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...AIRLINE INDUSTRY A STUDY ECO 203 NYC ROSA MARIA MAGPANTAY, RN, BSN, CCRN INTRODUCTION Since the inception of flight in 1903, air travel industry has been a crucial means of transportation for people and products. The invention of the first aircraft hundred-plus years ago brought about a revolution of how people travel. It has been a dynamically changing industry. Air travel remains a large and growing industry. It facilitates world trade, economic growth, tourism and international investment, and is therefore central to the globalization of many other industries. This paper will discuss the characteristics of airline industry in the United States with more focus on passenger airlines, its market structure and competitive environment, market shares and profits, recent developments, technology and innovation, and the future of the industry. U.S. AIRLINES The airlines are classified in many ways. It can be classified based on their size, revenue, and what they transport. The most common classifications are major passenger airlines, low-cost carriers, airfreight, and regional or commuter carriers. As of December 2014, there were 18 major carriers, which defined by the United States Department of Transportation as an airline that posts more than $1 billion in revenue during a fiscal year. Eleven of which are mainline passenger airlines, four are freight carriers, and three regional airlines. The mainline passenger airlines are Alaska Airlines, American Airlines...
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...American Airlines Strategic Report for American Airlines Jed Cullen Kevin Yamazaki Deirdre Chew April 7, 2010 April 7, 2010 Page 1 American Airlines Table of Contents Executive Summary ............................................................................................ 3 Company History................................................................................................. 4 Financial Analysis ............................................................................................... 8 Current Financial Position.................................................................................. 8 Industry Comparable Analysis ......................................................................... 12 Stock Performance .......................................................................................... 14 Management and Analyst Outlook................................................................... 15 Competitive Analysis ........................................................................................ 16 Internal Rivalry ................................................................................................. 17 Supplier Power ................................................................................................ 18 Buyer Power .................................................................................................... 19 Entry and Exit ..............
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...web-based Sales on the airline industry | AbstractExpedia, Travelocity, Priceline, and Orbitz: examples of how the travel industry in general, but more importantly the airline industry, has taken a deeper turn towards the low cost affair that consumers have tried to accomplish with that specific industry for many years now. It is a proven fact that the competitive advantage has been taken away from the airlines as consumers have much of the information required at their fingertips on the web at all times.Javier Alfonso FIN6644 - Global Financial Strategy for Professor Krishnan Dandapani | Impact of web-based Sales on the airline industry | AbstractExpedia, Travelocity, Priceline, and Orbitz: examples of how the travel industry in general, but more importantly the airline industry, has taken a deeper turn towards the low cost affair that consumers have tried to accomplish with that specific industry for many years now. It is a proven fact that the competitive advantage has been taken away from the airlines as consumers have much of the information required at their fingertips on the web at all times.Javier Alfonso FIN6644 - Global Financial Strategy for Professor Krishnan Dandapani | Table of Contents Introduction 2 History of AMR 4 Financial Analysis of the Airline Industry 5 History of Expedia 8 Financial Analysis for Expedia, Inc. 9 Comparison of Both Businesses and Their Industries 13 Conclusion 15 Introduction The airline industry is one...
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...RUNNING HEAD: THE AIRLINE INDUSTRY The Airline Industry Name College Table of contents Abstract 3 Introduction: 4 Products and services: 4 Organization: 4 Major players in the airline industry: 5 Economic impact of the airline industry: 8 Employment within the industry: 9 Key trends in the airline industry: 9 - Economic forces: 9 - Technological forces: 11 - Socio-cultural forces and political-legal forces / Government Regulations 13 Logistics and supply chain factors 14 Porter’s Five Forces Analysis: 16 Strategies used by airlines: 17 Expected Entrants: 18 Conclusion and Recommendations: 18 List of Abbreviations 20 Appendix: 20 References 21 Abstract The US airline industry is one of the key sectors of the country’s economy. Employing over ten million people, it contributes up to half a trillion dollars in annual revenues (about 5% of the US GDP). In recent years, the industry has been faced with major challenges arising from its external environment. Some of these include rising fuel prices and the global economic recession. As a result, growth in the industry has significantly slowed down with the ATA estimating that by the end of 2008 the industry had lost between $9 and $24 billion. With high intensity of industry rivalry, high supplier bargaining power, low threat from new entrants, low threat of substitution, and low buyer bargaining power; the industry’s attractiveness can be described as moderate. To be successful...
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...Delta Airlines inc. History of company Delta Air Lines, Inc. incorporated on March 16, 1967, provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company's operates through segments, including Airline Segment and Refinery Segment. The Company's route network is cantered around a system of hub, international gateway and key airports that the Company operates in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Each of these operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub or gateway to domestic and international cities, and other hubs or gateways. The Company also offers cargo services, aircraft maintenance, repair and overhaul (MRO), staffing services for third parties, vacation wholesale operations and private jet operations. In addition to providing maintenance and engineering support for fleet of over 900 aircraft, its MRO operation, known as Delta TechOps, serves aviation and airline users around the world. Its Delta Global Services provides services to third parties, including staffing services, aviation solutions, professional security and training services. The Company's tickets are sold through various distribution channels including digital channels such as delta.com and mobile, telephone...
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...THE AIRLINE INDUSTRY is in deep crisis. Losing over 100,000 jobs since September 11, 2001, and suffering major wage and benefit cuts, workers are in shock and looking for new leadership. The recent U.S. invasion and occupation of Iraq, the outbreak of the SARS epidemic and the economic downturn exacerbate the impact of the crisis on labor. Airline workers are in the forefront of discussions about their own industry and more general questions as political and social consciousness changes under the impact of the restructuring crisis. These experiences are valuable for all workers. While 9/11 and subsequent events greatly worsened the crisis, the dire state of this industry pre-dated the 9/11 attacks. The major carriers were losing millions of dollars and facing possible bankruptcy filings because of broken business models that were no longer profitable. In the capitalist system that generally means businesses fold. Bankruptcy as a Weapon Government aid still flows to the airlines, as it did after 9/11. But Wall Street and Washington are pushing the restructuring process. Meanwhile some important facts indicate the depth of the crisis and the challenge facing rank-and-file workers and their unions. Last summer US Airways, the seventh largest carrier, filed for bankruptcy and began slashing jobs, wages and benefits. It emerged from bankruptcy in the spring as a smaller carrier with lower labor costs than most of its competitors, but US Airways is still not out of turbulent...
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...Continental Airlines and United Airlines Merger Tony McDougal December 2, 2012 Professor Bates Abstract This paper explains the challenges faced by two major U.S. airlines, United and Continental airlines in an attempt to merge, and form the world's largest airline based in the United States. This consideration is based in relation to the movement of passengers via air traffic. The airline merge occurred in order for each airline to survive and be competitive within the airline industry. The paper explains briefly the reason for this merger, the strategy it used and went through to accomplish the merger. It also explains some pros and cons the merger and management faced. It explains the vision of the newly created company in reference to where they want to be in the future and the profit of revenue they foresee to earn with this merger. This paper outlines the structural change the new United Airlines came up with after the merger took place and how both United and Continental Airlines management, employees, and customers adapted to the merge. Continental Airlines and United Airlines Merger The merger of United and Continental airlines that was under way in 2008 formed the third’s world largest airline. This merge occurred during the decrease of air travel from heightened security measures against terrorism and high fuel costs. During this time, the United States government also tried to help by giving the airline industry monetary...
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...PEOPLE Our People make Southwest Airlines one of the world’s most admired companies. As our greatest asset, our People create a FUN travel experience; respond with compassion when travel plans change; generate innovative ideas that enhance the Customer Experience; and donate their time and LUV to those who need it. At Southwest Airlines, we’re a Family dedicated to our Employees, our Customers, and the communities we serve. Our unique corporate Culture, commitment to giving back, and putting Employees first contributes to our being recognized as a best place to work. Southwest Airlines offers our Employees the freedom to pursue good health, create financial security, travel, make a positive difference, learn and grow, create and innovate, work hard and have FUN, and stay connected. In return, our Employees respond with passion, commitment, and a rich diversity of perspectives that translate into better Customer Service and a dedication to doing the right thing. Our Customers fly Southwest Airlines not only for programs like Bags Fly Free,® but because they like us. Together, as the hometown carrier that cares, we aspire to make a positive difference by giving back to the communities we serve. Our commitment to giving back gives our Employees a sense of pride and purpose that Southwest Airlines does the right thing. With a Warrior Spirit, a Servant’s Heart, and Fun-LUVing Attitude, we strive to do what’s right by our stakeholders and each other. It’s the Southwest...
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...Strategic Report for Southwest Airlines Tycen Bundgaard John Bejjani Edmund Helmer April 12, 2006 Table of Contents EXECUTIVE SUMMARY............................................................................................... 3 COMPANY BACKGROUND ....................................................................................... 6 PORTER’S FIVE FORCES............................................................................................ 10 MARKET DEFINITION .............................................................................................................. 10 INTERNAL RIVALRY ................................................................................................................. 11 ENTRY ....................................................................................................................................... 12 SUBSTITUTES AND COMPLEMENTS ........................................................................................ 14 SUPPLIER POWER ..................................................................................................................... 15 BUYER POWER .......................................................................................................................... 18 FINANCIAL ANALYSIS.............................................................................................. 19 OPERATION FINANCIALS .................................................................................
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