American Airlines Swot Analysis Essay Example For Students

American Airlines Swot Analysis Essay HISTORY OF AMERICAN AIRLINES American Airlines, Inc. (AA) is a major airline of the United States. It is the worlds largest airline in regards to accumulated passenger miles. American Airlines took off on April 15, 1926 when Charles Lindbergh flew a bag of mail from Chicago to St. Luis in a DH-4 biplane. A year later the first passenger flight flew from Boston to New York, heralding the real first passenger airplane travel by American Airlines. A subsidiary of AMR Corporation, the head quarters of American Airlines is in Fort Worth, Texas adjacent to the Dallas/Fort Worth International Airport. American operates scheduled flights throughout the United States and flights to Canada, Latin America, the Caribbean, Europe, Japan, the Peoples Republic of China, and India. On June 25, 1936 American Airlines flew the world’s first commercial DC-3 trip from Chicago to New York. In 1941, American Airlines starting serving Mexico. In 1953, American Airlines began non-stop transcontinental service using DC-7’s. On January 25, 1959 American was the first airline to introduce coast to coast jet service with the introduction of Boeing 707’s. In 1981 the AA advantage program which is the frequent flyer project, was introduced. American Airline holds the distinction of many firsts in the aviation history. By regularly adding new airplanes it has kept pace with the changing face of technology and requirements. American Airlines is credited with the introduction of the first true in flight meal services. The airlines have evolved with the invention of newer airplanes that are capable of carrying more passengers to meet the growing need of people to fly. Traffic control system and ticket reservation system are also the innovations of American Airlines (History of American Airlines, 2006). MISSION STATEMENT AMR Corporation 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 airlines 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 (History of American Airlines, 2006). CUSTOMER SERVICE PLAN American Airlines and American Eagle are in business to provide safe, dependable and friendly air transportation to our customers, along with numerous related services. We are dedicated to making every flight you take with us something special. Your safety, comfort and convenience are our most important concerns (Customer Commitment, 2009). AMERICAN AIRLINES ORGANIZATIONAL STRENGTHS Constructing a profitable schedule is of utmost importance to an American Airlines because its profitability is critically influenced by its flight offerings. AA’s fleet assignment involves assigning aircraft types to flight legs which will maximize revenue and minimize operating cost. American Airlines knows that in order to be profitable they have to be equipped to service their passengers to ensure they have the ultimate experience in air travel. This will assure that they have repeat passengers and new customers. Their fleet is definitely an organizational strength as it enables AA to keep up with the demands of air travel. By having such a large size fleet of aircraft, AA is able to service their passenger’s needs. As of October 2009, the American Airlines fleet consists of 603 aircraft. The large size of fleet of AA is definitely a distinctive competence as they are the third largest fleet of airlines in the world (History of American Airlines, 2006). Another strength is definitely AA’s their customer service skills. American Airlines trains its’ staff members in superior customer service skills. Being able to assist customers in their travel needs puts American Airlines above the rest of the airlines in customer service. They train their staff to uphold the mission statement and manage customer expectations. With the competition in air travel, AA’s customer service skills would be considered a distinctive competence. This is proven by its number of repeat customers and rise in new customers. AA has nonstop and seasonal routes throughout the US and also internationally. They make it possible for people to travel to all parts of the world while experiencing superior air travel. They help the public to get to where they want and need to go. American Airline’s schedule design involves determining when and where to offer flights such that profits are maximized. American revolutionary war 2 EssayAnother major threat to American Airlines is a plague or terrorist attack anywhere in the world. This can negatively affect air travel. After 9-11, people were more reluctant to fly which posed a threat to the airline industry. It can be detrimental and if lucky, only cause flight delays and increased security measures. Planes have to turn back in order to investigate to see if the threat is valid or not. This puts pressure on passengers and causes inconveniences to say the least. It poses a security threat to passengers, crew and airport facilities. This can be attributed to the political-legal dimension of the general environment. Most bomb threats are politically motivated and results in a disruption of the normal activities of the airline and facilities where the device is purportedly placed. Anxiety and panic are created as well due to the bomb threat. More training has been implemented after 9-11 in how to deal with these types of situations. The legal dimension allows for new laws and regulations to ensure safety to the airline industry and its passengers. AMERICAN AIRLINES STRATEGIES AND CONCLUSION The global financial crisis is threatening the air transport sector in two ways: Demand for air travel in many of the most lucrative markets is declining and airlines are finding it enormously difficult to get financing for their deliveries planned in 2009. Banks are not willing to lend money due to the risk involved. After I have completed the SWOT Analysis on American Airlines I think they are using the Differentiation strategy. They continue to strive to be the best in customer service and keeping their clients satisfied in order to prolong good customer relations. They are upholding their mission statement and vision in these tough economic times which are rough for everyone. I would recommend that American Airlines cut out their most unprofitable routes in order to maximize profit. This reduces their revenue and increases their costs. They could also look into retiring the older aircraft that have proven to be more costly in upkeep and maintenance. They are just too expensive to keep on their books. They could also look into mergers and acquisitions mainly in international destinations to boosts profit and revenue on a global scale. The link-up with international airlines is a great way to prime the pump during this financial crisis. More revenue will be generated and they can become more marketable in the international arena once they continue to uphold their high standards in the airline industry. REFERENCES Customer Commitment, (2009). American Airlines. Retrieved November 8, 2009 http://www. aa. com/i18n/aboutUs/customerCommitment/main. jsp Flanagan, M. (2009, October 25). British Airways link-up with American Airlines set to go-ahead. Scotland on Sunday. Retrieved on November 15, 2009. http://business. scotsman. com/business/British-Airwayslinkup-with. 763913. jp History of American Airlines, (2006). Associated Content/Business and Finance. Retrieved November 8, 2009 http://www. associatedcontent. com/article/31923/history_of_american_airlines. html? cat=3 Reed, D. (2008 May 21). American Airlines to cut about 300 flights. USA Today. Retrieved November 8, 2009 http://www. usatoday. com/travel/flights/2008-0 5-21-american-airlines-capacity-cuts_N. htm Stewart, D. R. (2009 October 21). American Airlines loses $359 million in third quarter. Tulsa World. Retrieved November 8, 2009 http://www. tulsaworld. com/business/article. aspx? subjectid=45articleid=20091021_45_0_AMRCor843194