market right now the airlines seem to be in a strong financial position and

Market right now the airlines seem to be in a strong

This preview shows page 13 - 16 out of 63 pages.

market right now, the airlines seem to be in a strong financial position and hopefully the airlines have learned from the past to prevent any future bankruptcies.(Post is Unread)Thread:American Airlines- BozemanPost:RE: American Airlines- BozemanAuthor:Russell Davies Posted Date:November 13, 2014 2:11 PMStatus:PublishedBryan,
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I agreed with the techniques that American Airlines implemented for reducing costs. First off empowering the employees goes a long way in my oppinion. The employees are more likely to stand behind the company, brand, and vission to work towards a better company. When employees and management are split, then nothing gets done and can lead to turmoil and union strikes. Once the employees are working together than having systems like the pulse line and re-use of tools is more easily accomplished.(Post is Unread)Thread:Inside American AirlinesPost:Inside American AirlinesAuthor:Russell Davies Posted Date:November 13, 2014 12:33 PMStatus:PublishedAmerican Airlines provides a service to transport passengers from point-to-point safely, reliably, and on-time all while trying to make a profit and satisfy shareholders. An airline has countless number of costs from flight crews (including hotel and meals during travel), aircraft maintenance, aircraft leases, maintenance, salaries, facilities, airport fees, taxes, and most of all, fuel. With so many operational expenses, it becomes difficult to make profit when your main source of revenue is ticket sales. Ticket sales as discussed in the video is a fascinating and delicate science. If tickets are priced too high, a customer may look for other airlines. On the other hand, if priced too low, the flight may not make profit. A single flights ticket price per seat can change thousands of times before the flight even departs. The closer to the departure time, the price becomes exponentially large for those last minute travelers, especially business travelers. A single seat on a flight may have hundreds of dollars of disparity between one seat and the next. American knows that a last minute traveler may need to get somewhere in a hurry and are willing to pay. American howeverhas to not price a ticket too far out of reach, otherwise the flight may not sell enough tickets for the flight to be profitable as a single seat can be the difference between the flight making money or not.With revenue dependent on ticket sales, American Airlines has had to become more creative in reducing costs and overhead to increase profit margins. All aircraft require maintenance. There is going to be general maintenance and maintenance that is required by the
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FAA that cannot be missed or the airline would face a fine. Since the maintenance is required, American Airlines has to ensure the correct number of mechanics are on each aircraft for the job and then look to do as much work themselves without relying on 3rdparties that may charge more. A case in point as discussed in the video is American doing their own tail cone repairs to save money. American has also taken on reducing waste and need to purchase new drill bits by
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