BUSI601 - Individual Project 1 - American Airlines.docx - Running head INDV PROJECT 1 AMERICAN AIRLINES 1 Individual Project 1 American Airlines Liberty

BUSI601 - Individual Project 1 - American Airlines.docx -...

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Running head: INDV PROJECT 1 – AMERICAN AIRLINES1Individual Project 1– American AirlinesLiberty University
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INDV PROJECT 1 – AMERICAN AIRLINES2American AirlinesAmerican Airlines started as U.S. mail carrier in 1926, with the first flight flown by Charles Lindbergh from St. Louis to Chicago. The founder, C.R. Smith worked directly with Donald Douglas in the creation of the DC-3 plane which began the history of passenger air travel. In 1936, American was the first airline to fly commercial service using the DC – 3 to fly from New York to Chicago. Fast forward to 1991 with American serving its 1 billionth customer. Unfortunately, on the infamous September 11thattacks, American airlines lost numerous lives surrounding flights 11, which crashed into the North Tower of the World Trade Center and Flight 77, which crashed into the Pentagon. However, much like other airlines, American Airlines has risen from that tragedy and has made air travel safer and stronger. Today, American Airlines, headquartered in Dallas/Fort Worth is the largest airlines in the world with over 122,00 US employees and over 900,000 jobs worldwide. Along with their alliance partners American Airlines has nearly 20,000 flights daily serving 1,350 destinations in 200 countriesStrengths, Weaknesses, Opportunities and ThreatsThe SWOT (strengths, weaknesses, opportunities, and threats) analysis is a systematic approach to identify the critical success factors of any company. The strengths and weaknesses look internally and are identified by reviewing the resources within the company such as research and development, operations, and the overall strategy of the company. Whereas opportunities and threats are considered as external and are reviewed by reviewing the company’s competitors and the industry. One of the main strengths of America Airlines is their strong alliances with both regional and international carriers. The regional and contracted carriers include American Eagle, Envoy,
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INDV PROJECT 1 – AMERICAN AIRLINES3Piedmont, Compass, Republic, Mesa, Trans States, and PSA Airlines. The way American Airlines utilizes these smaller airlines is called codeshare. Codeshare is an agreement where flights are shared by more than one airline and each airline uses its own flight numbers and namebut the actual plane used is owned by a regional such as Compass Airlines. These agreements allow American Airlines to have more flights daily, fly more locations and not incur the added overhead expenses of added facilities. In addition, American Airlines was a founder of Oneworld alliance in 1999 which consists of British Airways, Cathay Pacific Airways and Air Berlin to name a few. Oneworld not only allows American Airlines to travel to over 150 countries and an additional 1000 destinations, it also boasts the best loyalty programs for international travelers.
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