Preview

Pest Analysis: American Airlines

Powerful Essays
Open Document
Open Document
1542 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pest Analysis: American Airlines
Analysis of the Airline Industry

Parameters of the Industry
American Airlines is a subsidiary of AMR Corporation and one of the leading airlines in the U.S. It has two subsidiaries, that is American Eagle and American Connection. It is the second largest airline in the world based on revenues used in its operation, its size of fleet and miles covered in passenger transport. It has an extensive operation of both domestic and international flights in North America, Latin America, Europe, Asia and the Caribbean. It was formed through acquisitions by around 82 small airlines in 1930 and has extensively grown since then. It was only six years from when it was founded and it was already the number one domestic carrier. Three years later is opened up at the New York Stock Exchange. In 1950, it merged with Pan American World Airways, making it into a bigger airline than it was before. In 1959, it became the first airline to offer east coast- west coast travel. With all these major improvements, American Airlines created two membership programs. In 1981, a frequent flyer program called AAdvantage was created. Another membership program they created was called American Airlines Admirals Club. These programs started as an “airline invitation” flyer member program were celebrities and VIPs were members. It is a paid membership program. It was a reward program that helped customers to be able to earn miles and preferential services. In 2001, American Airlines planes were hijacked on September 11.
American Airlines is one of the world’s largest airlines. Its headquarters is in Fort Worth, Texas. It has two major affiliates American eagle and American connection. The largest hub is the Dallas International Airport. It is the one of the founding members of the one world airline alliance. It is one of the world’s three largest global alliances. It serves 260 destinations in 4 continents. The main focus city is LaGuardia Airport (New York). The four main hubs are Dallas,

You May Also Find These Documents Helpful

  • Better Essays

    American Airlines has been suffering for many years. The company has suffered more losses than profits. Jobs have been cut; benefits have been scaled back, and the pilots of American Airlines are paid a lot lower salaries than their competitors. Many of them have been furloughed. All of these and many other factors have contributed to American deciding to create the world largest airlines with US Airways. In this essay I will discuss the circumstances that resulted in the merger, assess the significant positive (or negative) effects of the merger, and examine the organizational structure that has resulted from the merger.…

    • 1366 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Commercial aviation has developed a reputation over the years of numerous flight delays, overbooked flights, and bad customer service while statistically maintaining a reputation for being one of the safest modes of transportation in the world today. Throughout the years airlines have come and gone by becoming newly formed start ups in the industry and becoming successful powerhouses in the industry or going through mergers, acquisitions, and even bankruptcy. Domestic Airlines that call the United States home such as Delta Air Lines, American Airlines, and United Airlines all began with humble beginnings in the 1920s and have grown to become leaders in the commercial aviation industry today withstanding…

    • 691 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Pest Analysis For Costco

    • 953 Words
    • 4 Pages

    Stocks have given the highest yield over the past seventy years. The real challenge is to find a stock that is both profitable and safe, which I do using fundamental analysis.…

    • 953 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Alaska Airlines

    • 4475 Words
    • 18 Pages

    Alaska Airlines is the ninth–largest U.S. airline based on passenger traffic and is the dominant U.S. West Coast air carrier. Headquarter in Seattle, Washington, Alaska carriers more passengers between the state of Alaska and the Lower 48 than any other airline. During recent years it has expanded significantly to serve more U.S. East Coast, Mexican and Canadian destinations.…

    • 4475 Words
    • 18 Pages
    Best Essays
  • Good Essays

    The $11 billion dollar deal still has to be approved by American Airlines’ bankruptcy court judge and U.S. antitrust regulators. If approved, US Airways and American Airlines will merge and will be headquartered in Fort Worth, Texas. US Airways CEO, Doug Parker, will run the new company that will have nine hubs, 1500 planes, 100 million frequent fliers and $40 billion in annual revenue.…

    • 933 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    With preparation for the strategic plan, research will be performed on American Airlines in regards to their overall organizational structure, the company’s vision, mission and values. The importance of a company’s “vision statement is sometimes developed to express the aspirations of the executive leadership; vision statement presents the firm’s strategic intent that focuses the energies and resources of the company on achieving a desirable future” (Pearce, 2013, p. 34). American Airlines is a company that has been in business for 87 years, research will be conducted to get a complete insight to the…

    • 787 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    American Airlines, Inc. (American) was founded in 1934 and is the principal subsidiary of AMR Corporation. American provides aircraft services to around 160 destinations around the world. American Airlines has connections to 3 regional carriers. Two carriers are owned by AMR (American Eagle and Executive Airlines). The third carrier is owned by a third party (Republic Airways Holdings) that has no connection to AMR. These regional carriers serve to connect feed from major hubs to smaller regional airports that do not have international service. The major hubs for American are Dallas/Fort Worth, Chicago O’Hare, New York City (JFK), Miami and Los Angeles.…

    • 1781 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Readers of this site know that I have selected American Airlines as my airline of choice. I live near Austin, Texas: only Southwest offers more service from Austin than American, but Southwest does not offer international service or service to Hawaii, so that eliminated them from my consideration. I try to do all of my traveling on American Airlines or one of its Oneworld partners.…

    • 3865 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    1. British Airways Plc (BA) founded in 1974, was in the control of government for thirteen years and went into privatization in 1987. The industry operates about 240 aircrafts, serving about 120 destinations throughout the U.K and Europe including the Middle East, Africa, South and North America, Asia and the Pacific. British Airways competes with various other airlines in the industry but still it has maintained its domination in various parts of the aviation industry in the United Kingdom and Europe as well. Its major competitor is Virgin Atlantic, with 10 percent market share in the airline industry in terms of kilometers logged in 2007. As the airline industries are struggling to survive in this Global Economic Downturn, which saw a huge decline in the number of passengers and flights over the years, British Airways future looks very promising. The Airline announces its aim in its latest annual report (British Airways, 2008) of becoming ‘World’s most responsible airline’.…

    • 1897 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Pest Analysis Of Verizon

    • 1601 Words
    • 7 Pages

    Verizon is well known for their products and quality services. It is well understood that they are a cellular provider. With this they sell wireless services such as cell phones, tablets, connected devices, mobile hotspots, and much more. In recent years several partnerships have been cultivated to provided solutions in areas of focus such as “connected car,” and just to graze the tip of the iceberg for business solutions. There are numerous connections such as network fleet, and innumerable teams in which their primary goal is to complete risk analysis on a business and report potential solutions that Verizon Wireless or a strong affiliate can aid with.…

    • 1601 Words
    • 7 Pages
    Good Essays
  • Good Essays

    American Airlines Scandal

    • 295 Words
    • 2 Pages

    Since 2013 American airlines has entered financial difficulties that have caused it to go bankrupt. With the merger it did with US airways it did have to do a whole line upgrade to attract clientele back, With doing that upgrade it has acquired quite a bit of debt. According to Morningstar, In 2013 before its bankruptcy American Airlines was primarily made up of about 9.7 Billion dollars of…

    • 295 Words
    • 2 Pages
    Good Essays
  • Good Essays

    American Airlines send out many different surveys to see what type of products the employees are considering. American Airlines then uses employees from different hubs into a focus group to discuss the information. This information is them analyzed, the top items are then taken into a focus group to see how the focus group thinks about the products they want to offer. Once the products are approved…

    • 601 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Jetstar Five Forces

    • 681 Words
    • 3 Pages

    Sundaresan, Sanka Ram, n.d. Analysis of the Airline Industry. [online] Available at: http://bcs.solano.edu/workarea/mgarnier/MGMT%2050/Southwest%20Porters%20-%20Brief%202.pdf [Accessed 5 August 2011]…

    • 681 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Southwest Airlines Company, an American low-cost airline is the third largest airline in the world as well as the U.S.A. by the number of passenger aircraft among all of the world 's commercial airlines (Arlene Fleming, About.com Guide; www.nationsonline.org), operating more than 540 Boeing 737 aircraft today between 67 cities in the U.S.A. (Southwest Airlines Fact Sheet of 2008). Today, Southwest operates approximately 3,300 flights daily and boasts of being the only major airline to post profits every year for the last thirty six years. It justifiably claims to be the United States’ most successful low-fare, high frequency, point-to-point carrier (www.southwest.com).…

    • 2731 Words
    • 11 Pages
    Best Essays
  • Satisfactory Essays

    Pest Analysis

    • 618 Words
    • 3 Pages

    |organization or business. |How might the factors|L - Low |6 - 12 months|Negative - |Unchanged = |Important |…

    • 618 Words
    • 3 Pages
    Satisfactory Essays