Case Report for American Airlines

Topics: American Airlines, AMR Corporation, Regional airline Pages: 7 (1916 words) Published: April 13, 2011
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 trading symbol. It simply stands for “American.”Today, AMR is the parent company of both American Airlines, Inc. and American Eagle Airlines, Inc., and has a number of businesses and key facilities within its corporate structure. The company is also a founding member of the global oneworld Alliance. All aspects of the airline’s worldwide activities are overseen from AMR’s Corporate Headquarters campus in Fort Worth, Texas. | | Company Overview & Structure

American Airlines is one of the largest airlines in the world, contributing more than $150 billion per year to the U.S. 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 Professional Flight Attendants, Transport Workers Union. On an average day, American Airlines alone will…

* Fly about 270,000 passengers
* Receive more than 239,000 reservations calls.
* Handle more than 300,000 pieces of luggage.
* Fly about 3,300 flights.
American’s award-winning Web site,, allows customers to conveniently search for and book air fares and award travel; select seats; make hotel, rental car, and cruise reservations; get flight arrival and departure information; sign up for flight status notification, and even check-in and print boarding passes. Customers can also manage their AAdvantage accounts at, as well as sign up to receive email offers from American and get customized DealFinder SM alerts. What’s more, customers who purchase tickets at get a lowest fare guarantee and never pay an online booking fee. American Airlines is a founding member of the global oneworld Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, oneworld’s members serve nearly 700 destinations in over 140 countries and territories.

Vision Statement
To become the largest airline in...
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