The Opportunities And Threats That American Airlines Faces

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 airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

Southwest Airlines made its first voyage back in 1971 with service based in the cities of Dallas, Houston and San Antonio (Brief History, 2009). 38 years later, Southwest Airlines has more than 3300 flights a day and serves 66 cities in 33 states (Factsheet, 2009). Southwest Airlines has demonstrated a variety of strengths in its 38 year presence. Recent economic events have also caused a renewed focus on the company’s weaknesses. Aside from its weaknesses, Southwest Airlines has also been keeping track of opportunities that currently exist in the market. Like all other companies, however, they still have some ground to make up when analyzing possible threats to

American Airlines throughout its 90 year existence has been constantly linked to aviation greatness. From its first flight by the legendary Charles Lindbergh, to its 2015 ranking as the “World’s Most Profitable Airline.” American Airlines currently boasts the largest aircraft fleet in the industry with over 900 aircraft and during 2015 that fleet carried a nation leading 146 million enplaned passengers. In the following we will look at how a small mail carrier evolved and survived amongst its competitors to become one of the top airlines in the world.

International expansion and acquisitions that this company has made will enhance its profits and increase business

American Airlines has become the nation’s dominant air carrier after merging with US Airways and many have declared that the 787 is a critical next step in the modernization of American Airlines as a company. A while back American announced that flights will begin May 7 between Dallas-Fort Worth and its hub in Chicago, and beginning June 2 between Dallas-Fort Worth and Beijing. On June 4, American will fly the Dreamliner between Dallas-Fort Worth and Buenos Aires, Argentina. American said it will add more 787 routes this year as the new aircraft arrive, but they gave very little clues on what the future holds. "As we take delivery of the 787 and all of our new aircraft on order, we will continue to assess our network to determine which

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.

Within every industry, there will be threats. In the airline industry, there is the threat of terroristic violence, and technological issues. Also, governmental interference and social acceptance will continue to shape how the industry operates. Southwest Airlines will need to predict and adapt to all possible threats in the industry. Currently Southwest Airlines’ strengths in the industry are their ability to keep fares low due to the Airline Deregulation Act of 1978. However, their weaknesses are competitors trying to copy their model.

based in Fort Worth, Texas with approximately 124,300 employees. Since, 1934 they’ve grown their fleet to 930 aircrafts, transporting passengers and cargo to 50 countries, and 350 locations around the world. The information gleaned from the S & P report regarding American Airlines performance in 2016 is that their net income earnings were 2,676, a 65% decrease from a year ago. Industry conditions that have affected larger carriers such as American Airlines are the entrants of the smaller carriers that are offering super competitive fares aimed at seizing and capturing larger airlines clientele base. With these new entrants, forced larger carriers to offer “basic economy fares” to compete that ultimately eroded American and other larger carriers profit margins. In addition, to increase competitive pricing from other smaller carriers, American, and its larger competitors benefited from lower fuel cost, however year over year revenue declines plagued the industry at large. Additionally, industry pilot shortage resulted in a reduction in flights that increased the operational cost causing adverse financial difficulties. (S & P Capital IQ, 2017).

De Chernatony and Mcdonald define brand as an identifiable product, service, person or place augmented in

According to the definition from the American Marketing Association (AMA), a brand is a name, term, sign or combination of them intended to identify goods and services of one or a group of sellers and distinguish it from competitors.

The aim of this case study is to examine value pricing as exercised by American Airlines (AA) in 1992. The analysis will include discussion of decisions made by the company leadership, the impact of the strategy to simplify airfares, and recommendations for alternative approaches that could have provided better outcomes.

Being the world’s largest airlines regarding revenue and fleet size, American Airlines operates extensive networks both the local and international. The company has its headquarters based in Fort Worth, Texas. United Airlines is the biggest airline in the United States by some destinations served. American Airlines becomes the second largest Airline regarding the number of destinations served. It has a vast area of operation, operating from its main hub at Fort Worth to Washington D.C. other hubs of operation are at, Los Angeles, Charlotte, Chicago-O’ Hare, Miami, New York-JFK, York-LaGuardia, Philadelphia, and Phoenix (McNally et al, 2013). The main maintenance base for the American Airlines is at Tulsa International Airport.

The economic effects section will cover some of the aspects that have shaped American Airlines (American) into the company they are today. American has dealt with capacity reduction, bankruptcy, cutbacks, economic recession, mergers and have managed to stay seeded as one of the top four airlines in the U.S. These four airlines maintain control of 80 percent of air travel across the United States. The airline industry is very volatile and depends heavily on the economy. Airlines are faced with a balancing of managing a large revenue stream, watching global fuel prices, and keeping an eye on the political movements around the world.

McCarthy, Perreault and Quester define branding as "the use of a name, symbol, design or combination of the three to identify a product" and more particularly a brand name as "a word, letter, or group of words or letters used to identify a product" (Basic Marketing, a managerial approach; 1997).