American Airlines: The New America is Arriving

Only available on StudyMode
  • Topic: American Airlines, Delta Air Lines, US Airways
  • Pages : 8 (2136 words )
  • Download(s) : 101
  • Published : March 29, 2013
Open Document
Text Preview
American Airlines – “The new America is arriving”

American Airlines, Inc. (“American”) is a major U.S. airline owned by AMR Corporation (“AMR”) and was founded in 1930 under the name American Airways, before changing to its current name in 1934. Headquartered in Fort Worth, Texas, American operates an international and domestic network, with scheduled flights in North American, the Caribbean, South America, Europe, and Asia (Pacific). American has five major hubs in the United States, Dallas/Fort Worth International Airport (its largest), John F. Kennedy International Airport (New York), Los Angeles International Airport, Miami International Airport, and O’Hare International Airport (Chicago). American, partnered with AMR’s regional carriers, American Eagle and AmericanConnection, serves 260 airports in more than 50 countries with, on average, more than 3,300 daily flights. The combined network fleet has approximately 900 aircraft. Early Milestones

Within its first decade of operation, American flew its one-millionth passenger, became the number one domestic carrier in the United State (by revenue), and began trading on the New York Stock Exchange. The airline had also collaborated with New York Mayor Fiorello LaGuardia to develop LaGuarida Airport. As a first-mover among airlines, and a critical player in the development of the project, American was also granted extra hanger space and real estate. In 1939, American opened the world’s first airline lounge, the Admirals Club, creating a model that other airlines would follow.

AAdvantage is the frequent flyer program of American. Launched May 1, 1981, it was the second such loyalty program in the world (after the first at Texas International Airlines in 1979), and remains the largest with more than 67 million members as of October 2012. Leadership

In November 2011, Thomas Horton was named Chairman and Chief Executive Officer of AMR and American, succeeding Gerald Arpey. Mr. Horton initially joined AMR in 1985, and has held a range of senior financial positions, including Vice President and Controller. The Board of Directors is chaired by Mr. Horton, in addition to eleven other independent directors. According to the company’s Board of Directors Governance Policies, the responsibility of each director is to provide effective governance over the Company’s affairs for the benefit of the company and its shareholders. Mission Statement

AMR is committed to providing every citizen of the world with the highest quality air travel to the widest selection of destinations possible. AMR will continue to modernize its fleet while maintaining its position as the largest air carrier in the world, with a goal of becoming the most profitable airline. AMR is the airline that treats everyone with equal care and respect, which is reflected in the way each AMR employee is respected. AMR recognizes that its employees are the key to the airline success and invests in the futures and lives of its employees. By investing in tomorrow’s technologies and by following a strict adherence towards environmental regulations, AMR demonstrates its commitment to the world environment. American – 2001 to 2011

The aftermath of the tragedy on September 11, 2001, saw record lows in passenger travel, rising fuel prices, and a variety of other economic influences raised costs and reduced revenues of airlines across the board. Many players in the airline industry, a unionized field, found themselves stuck in unrealistic labor contracts that were made when times were better, but were proving unsustainable in times of hardship. Bankruptcy proved to be the only way out of these and other high stakes contracts for most of the larger carriers. AMR was not one of those airlines.

As the majority of the major reorganized airlines started coming back to profitability in 2008, AMR saw losses of $4 billion from 2008 to 2010. Unlike its competitors, AMR had not been able to reduce its debt...
tracking img