The American Airlines established in 1930 in Texas remains to be the biggest airline today based on revenue, the number of passengers and destinations covered. It covers approximately 350 destinations in different countries across the world (Harlan, 2015). Despite that, the airline has experienced a fair share of challenges including coming close to bankruptcy in 2003 and facing employee upheavals. In 1946, the airline experienced its most extensive expansion program when it acquired 220 planes for the fleet. The logistics associated with the growth was problematic for the airline, mainly when taking reservations. Passengers had to call the airline offices to make a reservation and in other instances visit the nearest ticket office. The staffs …show more content…
In a quest to reach many passengers, American airlines stills use travel agencies and third-party channels. Even after the introduction of SABRE to travel companies, they are required to use the system for American Airlines alone. For example, they cannot use the system to reserve seats from a different airline company and therefore it makes their work complicated. The airline employs Global Reservation System (GDS), which allows travel companies to access the American Airlines’ reservation system to book seats, hotel and vehicles. Although the system is more expensive than online booking, the airline prefers it because it encourages human interaction among …show more content…
The airline operates both local and international flights daily to different destinations. The regional flights from the US to Puerto Rico and Canada are the most popular and generate the most income for the Airline. In the year 2016, they amounted to revenue of 87 million compared to trips to Latin American countries, which produced 20.8 million. Moreover, the flights across the Pacific generated 8.5 million while those across the Atlantic yielded approximately 19 million to the company. The most popular local destination for the airline includes Texas where the airline flies more than 56 million people making 284,223 departures annually. Florida follows it with 42 million people with about 231,591 departures whereas Philadelphia flies over 23 million passengers comprising of 156,456 departures annually. The airline operates flights to more European destinations having about 130 departures on a daily basis (Koenig,
American Airlines and US Airways are in the aviation industry. Both companies provide air transportation services for passengers and freight. Together they have formed American Airlines Group, Inc., the world’s largest airline, as measured by revenue passenger miles (RPMs) and available seat miles (ASMs). In 2012 the U.S. airline industry was worth approximately $195billion in operating revenue, up from $154billion in 2009, including an operating fleet of 3,451 aircraft.1
This is the historic background of an American Airline company called the Southwest Airlines Co. based in Dallas which still exists and operates with great success between 57 cities in 26 states of the US, by over 300 airplanes , providing primarily short-haul, high frequency, point to point, low fare service . Through this essay we will see an analysis of the company’s advantages and disadvantages through a SWOT Analysis. We will try to localize the problems of the company at the time and in the case of a future expansion, and we will try to give a number of alternative solutions and chose one of them. The Southwest Airlines is a company that has done its first movements in the airline world in 1971 after many efforts for its opening through legal battles with competitors that did not believe that there was any particular reason why the another airline company should exist among all the others already existing. The different things that the new airline company provided were many and very interesting. The idea started from two friends Rolling King, and investment advisor, and Herb Kelleher, his lawyer, who met in order to discuss the idea of Rolling King for a low-fare, no- frills airline to fly between three major cities in Texas. The outcome of this discussion was in reality the decision of the two men to go for something that they believed would work, even though they were not positive about that. After all the legal battles between the two men and the airline companies of Texas at the time who believed it was not necessary for another airline company to enter the market, battles that prevented the operation of the company for three whole years, Southwest Airlines Co. had become a reality. Other legal battles followed in the future that justified the Southwest Airlines but left the company broke, while during the first year of its operations made losses and the earnings for the next half a year were balancing with costs. Gladly the recovery came soon and by 1978 Southwest Airlines was one of the most profitable in the country. Later on, Southwest Airlines Co. managed to provide airline transportation in eight more cities in Texas and dominated the Texas market, with low prices and frequent departures. Today the Southwest Airlines Co. is a very big domestic airline company, the fourth in the US. We will now have a small analysis of the company’s environme...
As the nature of air travel is largely logistical, it is hard to talk about the industry without addressing geography. Airlines don't just have to market to customers in terms of geographics, the airline industry is geographic; getting a customer from where they are to where they want to be.
The major point of focus, which these two companies are trying to do by merging, is to establish the largest airline network that would be very influential in the airline market. The newly established American Airline has the capacity of operating 6,700 daily flights and this makes it the most prominent and influential global airliner (Karp 1). Its operating presence in more than 50 countries worldwide adds to the network it intends to establish. The 6,700 daily flights make it presence prominent across all the 330 destination points it operates in worldwide.
American Airlines was under Robert Crandall's leadership from 1980, when he was named president and later chairman, until he retired in 1998. He possesses characteristics like intelligence, character, ability, and desire, all of which is needed to get things accomplished through people. American Airlines was transformed from a small, domestic carrier to one of the world's leading airlines with the largest jet fleet worldwide. American led the airline industry in the 1990's in revenues and operating income, and its parent company, AMR Corporation, was one of the top Fortune 500 companies under Crandall’s reign.
International passenger traffic to and from Australia in December 2103 was carried by forty-eight international airlines that were in operation in that month, offering seats to over three million passengers. The number of realised passengers represents a growth of 7.8% over the number of booked seats in December 2012 (BITRE, 2014). Passenger utilisation however is on the decline, with December 2013 passenger utilisation being 80.2%, a fall from 82.4% at the same time the previous year (BITRE, 2014).
Due to the increased use of the internet, it is becoming more and more easier to book online. This allows customers to book flights easier and increase Jet2’s revenue. Revenue is increased through not having to deliver or post tickets out to its customers, in comparison with other non-internet based airlines. It is believed that over 97% of Jet2’s customers book online, which further highlights Jet2’s emphasis on online bookings.
The American Airline Industry The Airline Industry is a highly competitive industry with companies operating in domestic and/or international markets. Many airlines are stilled owned by their respective countries and have treaties between countries to allow airlines to land there. The industry has been taking a relatively shaky course as costs are rising and profits have been decreasing. This was further intensified with the recent terrorist attacks on US soil, which lead to higher costs as the need for more security arose. Recent financial statements of major airlines showing major losses reflect the problems that the industry is having.
In order for revenue management to be successful, four fundamental conditions must be met. The first requires a permanent amount of supply available for sale. Meaning, a fixed amount of seats per aircraft should be available per route. Second, resources sold must be perishable. Seats are a perishable items, if not sold they terminate without value. Third, the most vital portion of r...
Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.
When analyzing Delta, you do not have to search very far before quite possibly one its strongest attribute rears its head. Based on calendar 2000 data, Delta is the largest U.S. airline in terms of aircraft departures and passengers enplaned, and third largest as measured by operating revenues and revenue passenger miles flown. Delta is the leading U.S. airline in the transatlantic, offering the most daily flight departures, serving the largest number of nonstop markets and carrying more passengers than any other U.S. airline. Delta Air Lines transports more passengers worldwide than any other airline. Through a vast worldwide route system Delta has flown over 117 million passengers, more than any other airline in the world. Delta mainline, domestic and international service, Delta Express, Delta Shuttle, Delta Connection®, Delta Sky Team and Worldwide Partners operate 6,400 flights each day to over 450 cities in 98 countries.
Inbound logistics – Low cost, simple to use cost effective reservations system, ticketless travel, pre-assigned seating, paperless cockpits, search engine optimisation and BlueTurn; for minimising ground time.
1. Issues 2. American Airlines’ objectives 3. The airline industry 4. Market 5. Consumer needs 6. Brand image 7. Distribution system 8. Pricing 9. Marketing related strategies 10. Assumptions and risks
number topped 650 million. All other factors being equal this would result in more passengers
United States Department of Transportation (2013). Total Passengers on U.S Airlines and Foreign Airlines U.S. Flights Increased 1.3% in 2012 from 2011 | Bureau of Transportation Statistics (press release BTS 16-13). Retrieved from http://www.rita.dot.gov/bts/press_releases/bts016_13