American Airlines Case Study

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American Airlines operates as an air carrier providing scheduled air transportation services for passengers, cargo, freight, and mail services. It was founded in 1934 and is headquartered in Fort Worth, Texas with hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. The company employs 124,300 employees and serves approximately 140,000 passengers a day with 6700 flights per day to 350 destinations (American Airlines). American Airlines has had to make a comeback and topped Fortune magazine’s list of best business turnarounds in 2016 (American Airlines). In 2011 AA declared bankruptcy, but was able to emerge from bankruptcy in 2013 as American Airlines Group. American Airlines Group includes American, American Eagle, and the American Connection Airlines serving 250 cities in over 40 countries with more than 4,000 daily flights. Then from 2013 – 2015 American Airlines merged with US Airways, keeping the American name. This combination created the world’s largest carrier (Fortune). While profits were still rising in the third quarter of 2016, it appears that they are starting to come back down as they have decreased by 91% in the fourth quarter. However, this still gives American its second-best year ever and could be partially due to employee raises. The Global Airline Industry has been doing well, with the past three years having the best performance in history. According to IATA, the

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