American Airlines: Unsuccessful Firm
American Airlines, Inc. (AA) is a major airline of the United States and is the world's second-largest airline in passenger miles transported, passenger fleet size, and operating revenues. American Airlines is a subsidiary of the AMR Corporation, and was founded in 1930. Distribution:
American Airlines is headquartered in Fort Worth, Texas, and operates an extensive international and domestic network, with scheduled flights throughout North America, Latin and South America, Europe, Asia, Pacific and the Caribbean. American Airlines has a fleet size of 605 Aircraft carriers, and flies to over 260 destinations. (AA.com) Pricing:
American Airlines uses a value-based pricing strategy for their airline fair. All fairs are mileage-related. Consumers have the options of Economy Class, Business Class, and First/Premium Class. Compared to other major US Airways, American Airlines provides competitive rates for round-trip and direct flights. (Yahoo Finance) Promotion:
The AA Advantage is a frequent flyer rewards program implemented by American Airlines. Launched in 1981, it is the largest loyalty program in the world, with over 67 million members. Miles accumulated in the program allow members to redeem tickets, upgrade service class, or obtain free or discounted car rentals, hotel stays, merchandise, or other products and services through partners. The AA Advantage has been American’s most successful promotional campaign. (AA.com) People:
American Airlines total workforce includes 87,897 people. Management level employees consist of 8,453 positions, while non-management employees make up 79,444 people in total. American Airlines has an Allied Pilots Association, which is the union that represents 12,000 pilots. Tom Horton is the current Chief Executive Officer of the company. (Hoovers.com) Servicescape:
Coach and Business Seating in a typical American Airline Coach-Class seating consists of close-quartered cabins. Customers reviewed these seats as cramped, but were given a decent amount of storage room for carry-on luggage (glassdoor.com). First-Class seating is far more luxurious and open, compared with coach and business class. Customers are given a higher level of services for a higher fair price. (AA.com) Service Delivery:
On domestic flights and flights to Canada, Central America, and areas in the Caribbean, American Airlines offers a “buy on board” program offering sandwiches and snacks for purchase. American offers free coach meals on flights to Europe, Haiti, Asia, and select South American destinations. First Class and Business Class passengers receive alcoholic beverages for free, while non-alcoholic beverages are free for all classes. Customers are provided with are provided with 14 channels of music and a variety of TV programs in the CBS ranging from sports, movies, and reality television shows. There are a range of magazines that are offered on-board. Customers are also able to experience in-flight shopping through the Skymall. Headsets are available to coach class for two dollars on domestic flights and free on flights to/from Europe, Asia, India and South America, and they are free for business and first class flyers. (AA.com) Customer’s Role:
Customers have the options to purchase tickets remotely online, over the phone, or face to face with an employee at the airport. Customers can choose to print their tickets the day of the flight, and perform a self-check in, so virtually no assistance is needed until boarding. Once on the flight customers are expected to experience service encounters with the flight attendants. Whether it is for food and beverage, entertainment, or comfort needs, flyers can ask flight attendants for their assistance. Customers on average reviewed the in-flight experience as “satisfactory”. There were still however, a number of cases where customers filed complaints for unpleasant experiences with “mean” employees (glassdoor.com)....
Cited: American Airlines “Airline Tickets and Flights at AA.com." AA.com. American Airlines, n.d. Web. 03 Dec. 2012. http://www.aa.com/homePage.do
“AMR Corporation Company Profile” - Yahoo! Finance." AMR Corporation Company Profile - Yahoo! Finance. Yahoo Finance, 22 Nov. 2012. Web. 03 Dec. 2012. http://biz.yahoo.com/ic/10/10021.html
"AMERICAN AIRLINES, INC.Company Information." Hoovers.com. Web. 03 Dec. 2012. <http://www.hoovers.com/company-information/cs/company-profile.American_Airlines_Inc.89737ab2c5ec00cb.html>.
"American Airlines Reviews | Glassdoor." Glassdoor. American Airlines, 19 Oct. 2012. Web. 03 Dec. 2012. http://www.glassdoor.com/Reviews/American-Airlines-Reviews-E8.htm
American Customer Satisfaction Index. ACSI, 14 Nov. 2012. Web. 03 Dec. 2012. http://www.theacsi.org/?option=com_content
"The 2012 Statistical Abstract." Airline Operations and Traffic. Census Bureau, n.d. Web. 03 Dec. 2012. www.census.gov/compendia/statab/cats/transportation/airline.html
"(AA) American Airlines Information." Flightsats.com. American Airlines, n.d. Web. 03 Dec. 2012. http://www.flightstats.com/go/Airline/airlineDetails.
Curtis, Brian. "Flight Cancellations Surge at American Airlines." Travel. NBCNews.com, 19 Sept. 2012. Web. 03 Dec. 2012.www.nbcnews.com/travel/flight-cancellations-surge-american-airlines-1B5984573
Brown, Nick. "American Airlines Asks for More Time to Control Bankruptcy." Chicago Tribune. Chicago Tribune - Business, 30 Nov. 2012. Web. 03 Dec. 2012.
“Labor Strike Threatens Airline." The Marietta Daily Journal. MDJonline.com, 12 Nov. 2012. Web. 03 Dec. 2012
Please join StudyMode to read the full document