10k Analysis American Airlines
10-K Integration Project
Trace Davidson
Mondays, 6:00 - 7:20
American Airlines
Matt Vinas
10/1/2012
1. Political: “In some cases, foreign governments limit U.S. air carriers’ rights to carry passengers beyond designated gateway cities in foreign countries.”
This can affect the American Airlines company in the competitive airline industry because if some foreign governments deny the rights to U.S. air carriers to carry passengers beyond designated cities, the loyal customers of American Airlines would choose another airline that would be accepted by foreign governments, which will ultimately decrease American Airline ticket sales followed by a decrease in profits. 2. Economic: “The airline industry is subject to extensive government fees and taxation that negatively impact our revenue. The U.S. airline industry is one of the most heavily taxed of all industries.”
With American Airlines having competition in both domestic and international markets it can have both a negative and somewhat positive effect on the company. With the US government enforcing fees and taxations to all US airline companies, it will not have a negative nor positive effect on the competitive US airline market. These fees will have a negative impact on American Airlines revenue stream when they are trying to compete in the international market. 3. Sociocultural: “Our business is affected by many changing economic and other conditions beyond our control, and our results of operations tend to be volatile and fluctuate due to seasonality, such as, changes in consumer preferences, perceptions, spending patterns or demographic trends.”
Just like in any other industry, if uncontrollable economic conditions take action it can cause certain consumer trends that may either hurt or help your current financial standing. American Airlines is affected by these economic changes on a yearly basis that alters their customers’ perceptions about the company which ultimately hurt
Trace Davidson
Mondays, 6:00 - 7:20
American Airlines
Matt Vinas
10/1/2012
1. Political: “In some cases, foreign governments limit U.S. air carriers’ rights to carry passengers beyond designated gateway cities in foreign countries.”
This can affect the American Airlines company in the competitive airline industry because if some foreign governments deny the rights to U.S. air carriers to carry passengers beyond designated cities, the loyal customers of American Airlines would choose another airline that would be accepted by foreign governments, which will ultimately decrease American Airline ticket sales followed by a decrease in profits. 2. Economic: “The airline industry is subject to extensive government fees and taxation that negatively impact our revenue. The U.S. airline industry is one of the most heavily taxed of all industries.”
With American Airlines having competition in both domestic and international markets it can have both a negative and somewhat positive effect on the company. With the US government enforcing fees and taxations to all US airline companies, it will not have a negative nor positive effect on the competitive US airline market. These fees will have a negative impact on American Airlines revenue stream when they are trying to compete in the international market. 3. Sociocultural: “Our business is affected by many changing economic and other conditions beyond our control, and our results of operations tend to be volatile and fluctuate due to seasonality, such as, changes in consumer preferences, perceptions, spending patterns or demographic trends.”
Just like in any other industry, if uncontrollable economic conditions take action it can cause certain consumer trends that may either hurt or help your current financial standing. American Airlines is affected by these economic changes on a yearly basis that alters their customers’ perceptions about the company which ultimately hurt