American Airlines Sources for your Essay

Analysis: American Airlines


." that "…provide new capabilities to different staff functions" (Ambrosio and Mitchell, 2013)

Analysis: American Airlines


" that "…provide new capabilities to different staff functions" (Ambrosio and Mitchell, 2013). The Nature of Airline Cost Structures The airline industry's cost structures are drawn from the oligopolistic nature of i) the air travel market; and ii) the manufacturer market (Ben-Yosef, 2006)

Analysis: American Airlines


For the last one decade, the airline has been using a revenue management approach consisting "of a combination of overbooking, allocating capacity among customer segments, and a differential pricing scheme for customer segments." Predominantly, the airline industry has made use of the leg/class control method, in which case "airlines establish a collection of products known as booking or fare classes that are designated by a single alphabet character" (Boyd and Bilegan, 2003)

Analysis: American Airlines


The board regulated the industry's every move, determining all aspects, from M&As and alliance-formations to pricing, marketing, and entry/exit. The industry worked more like a legalized cartel (Cento, 2009)

Analysis: American Airlines


This text will focus on the point-to-point and hub-and-spoke structures. Point-to-Point: in this framework, all passengers "board at flight origin and deplane at the destination," as depicted in fig 1 (Cook & Goodwin, 2008, p

Analysis: American Airlines


, (2010) places the average load factor at 50% over the first half of the 1970s decade. However, by the beginning of 2008, the "average number of passengers on board a flight had greatly improved due to deregulation and the effects of competition in the industry," and the load factor had risen to 75% (Gildner, et al

American Airlines


And, American is reshaping its business model to cut costs. The older carriers such as American Airlines have traditionally offered frequent service to many cities with short layovers that have produced a higher cost structure than lower-cost carriers (Airlines: New thinking, please, 2004)

American Airlines


AMR lost 761 million dollars in 2004 with more bad news expected. AMR and the airline industry in general are affected by two negative industry dynamics, high fuel costs on the supply side and low revenue yields on the demand side (Chakravorty, 2005)

American Airlines


Crude oil prices have risen eleven percent since the start of 2005. Further, airline fares are at historic lows and rivals such as Delta Airlines has ignited fare wars after capping its coach fares at $499 each way in January 2005 (Reed, 2005)

American Airlines AMR


If senior management has a short-term focus on stock price as its central motivation, that can lead to unethical behavior. The role of management is to increase the wealth of the shareholders (Friedman, 1970), something that must be done over long run, not the short run

American Airlines AMR


That move left the airline without a contract for its pilots. American was forced to extend its bankruptcy in order to buy time to complete a negotiation with the pilots' union (McLaughlin, 2012)

American Airlines AMR


With 130,000 covered workers and little free cash flow to pay them their benefits, American found itself with four underfunded pension plans. The company is seeking to terminate its underfunded plans and replace them with a 401k offering (Miller, 2012)

American Airlines AMR


The move to defer maintenance illustrates that the company chose not to follow the rules, in order to gain a short-term boost to the stock price. Indeed, when pilots began enforcing maintenance rules as part of a rule-book slowdown protest, the company found itself in chaos, so accustomed had it become to deferring needed maintenance (Yglesias, 2012)

Airline Industry and American Airlines


High labor costs at United coupled with public relations problems after 9/11 have also made cost value maximization difficult. Instead of slashing fares to draw in more customers, United has tried to cut costs by replacing its planes with smaller planes and fewer flights and by slashing business discounts and the salaries of non-flight personnel like sales representatives (Rowell, 2002)

American Airlines Bankruptcy


There is an automatic stay on all non-secured debts collections, lawsuits, foreclosures or repossessions. The time that the organization buys for the company is usually just the amount of time it needs to reorganize and get back into healthy control of the company's operations (Dorward, 2012)

American Airlines Bankruptcy


Also, the downgrade had an immediate effect state and local bonds in the immediate Washington D.C. vicinity (Goldfarb, 2011)

American Airlines Bankruptcy


Seemingly, since Chrysler also had to go into Chapter 11 restructuring, the industry type does not seem to be the issue here. It seems simple politics is in the game, while only some companies have to tighten their belts (Gregory, 2012)

American Airlines Bankruptcy


Analysis-Comparison and Contrast The Chapter 11 bankruptcy that was announced in November of 2011. Its most recent incarnation has entailed the announcement of 14,000 staff cuts in order to cut costs and chart a way out of bankruptcy (Hicken, 2012)

American Airlines US Airways Merger Issues


S. Airways and American Airlines will result into better deals for both employees working for the firms because of the massive support of the unions representing workers in the United States (Tully, 2013)

American Airlines US Airways Merger Issues


In addition, the entity also has an established East Coast route network thus inclusion of the U.S. Airways Shuttle service (U.S. Airways Group, Inc