The Formation Of American Airlines
Presented By:
Kenneth Ellis, Ashlie Holmes, Jamal LaSalle, and John Rossum
I. Introduction | At the company’s annual meeting in May 1982, stockholders approved a plan of reorganization under which a new holding company, AMR Corporation, was formed and became the parent company of American Airlines. The reorganization took effect on Oct. 1, 1982. The formation of AMR had no effect on day-to-day operations of American, but it did – and still does – provide the company with access to sources of financing that otherwise might not be available. The holding company structure also allows the company to take advantage of appropriate new opportunities. The name “AMR” was taken from the airline’s three-letter New York Stock Exchange …show more content…
economy. American and its regional airline affiliates, American Eagle and the AmericanConnection airlines, serve 250 cities in over 40 countries with more than 3,400 daily flights. Among domestic U.S. airlines, American’s 2007 market share was 18%. American’s network covers points throughout North America, the Caribbean, Latin America, Europe and the Pacific. American has major connecting hubs at Dallas/Fort Worth, Chicago O’Hare, Miami, and St. Louis, and a large concentration of Caribbean service at San Juan, Puerto Rico. About 90% of American’s flights begin or end at these hubs. American’s “Transcon” services between cities on the U.S. East and West Coasts have long been important non-hub flights. American also has a large presence in other large U.S. metropolitan areas – New York (four airports), Los Angeles (four airports) and Boston. In 2007, about 35% of American’s flying was international – Latin American and the Caribbean, 16.6%; Europe, 14.5%; and Pacific, 4.1%. The combined network fleet numbers more than 900 aircraft. In 2007, American carried approximately 98 million passengers, about equal to one-third of the U.S. population. American has nearly 82,000 employees worldwide, and American Eagle has about 13,000. Approximately 65% of AA’s employees are represented by one of three labor unions – Allied Pilots Association, Association of …show more content…
Strategic Alternatives * Concentric Diversification which is the addition of new but related products. Attract new customers. * Company Retrenchment. Achieved through regrouping, restructuring, and downsizing to reduce costs and assets. * Explore Divestiture by selling its American Eagle division. * Worse case is Liquidation.
Future Recommendation * American Airlines need to raise profitability. Some recommendations include, but are not limited to: * Reducing Number of flights from the Dallas/Fort Worth and the O’Hare
Kenneth Ellis, Ashlie Holmes, Jamal LaSalle, and John Rossum
I. Introduction | At the company’s annual meeting in May 1982, stockholders approved a plan of reorganization under which a new holding company, AMR Corporation, was formed and became the parent company of American Airlines. The reorganization took effect on Oct. 1, 1982. The formation of AMR had no effect on day-to-day operations of American, but it did – and still does – provide the company with access to sources of financing that otherwise might not be available. The holding company structure also allows the company to take advantage of appropriate new opportunities. The name “AMR” was taken from the airline’s three-letter New York Stock Exchange …show more content…
economy. American and its regional airline affiliates, American Eagle and the AmericanConnection airlines, serve 250 cities in over 40 countries with more than 3,400 daily flights. Among domestic U.S. airlines, American’s 2007 market share was 18%. American’s network covers points throughout North America, the Caribbean, Latin America, Europe and the Pacific. American has major connecting hubs at Dallas/Fort Worth, Chicago O’Hare, Miami, and St. Louis, and a large concentration of Caribbean service at San Juan, Puerto Rico. About 90% of American’s flights begin or end at these hubs. American’s “Transcon” services between cities on the U.S. East and West Coasts have long been important non-hub flights. American also has a large presence in other large U.S. metropolitan areas – New York (four airports), Los Angeles (four airports) and Boston. In 2007, about 35% of American’s flying was international – Latin American and the Caribbean, 16.6%; Europe, 14.5%; and Pacific, 4.1%. The combined network fleet numbers more than 900 aircraft. In 2007, American carried approximately 98 million passengers, about equal to one-third of the U.S. population. American has nearly 82,000 employees worldwide, and American Eagle has about 13,000. Approximately 65% of AA’s employees are represented by one of three labor unions – Allied Pilots Association, Association of …show more content…
Strategic Alternatives * Concentric Diversification which is the addition of new but related products. Attract new customers. * Company Retrenchment. Achieved through regrouping, restructuring, and downsizing to reduce costs and assets. * Explore Divestiture by selling its American Eagle division. * Worse case is Liquidation.
Future Recommendation * American Airlines need to raise profitability. Some recommendations include, but are not limited to: * Reducing Number of flights from the Dallas/Fort Worth and the O’Hare