American Airlines and its regional partner American Eagle are a thriving corporation in the air transportation industry. They serve almost 250 cities globally, operating more than 3600 daily flights. The company’s objective is to deliver secure, dependable, and amicable air transportation services and associated offerings, with the aim of ensuring every experience is favorable. Given the extensive array of services provided, employees face an ongoing challenge in upholding the company’s reputation during day-to-day operations.
With 69 years of operation, American Airlines has been a key player in the advancement of air travel within the United States. Originally known as “Aviation Airways,” this company initially focused on mail delivery between Chicago and St Louis. In 1934, it underwent a rebranding to become American Airlines, Inc., swiftly establishing itself as the leading domestic airline in terms of revenue passenger miles.
American Airlines emerged as the sole US airline with a fully post-war fleet of pressurized passenger aircraft after World War II. They capitalized on these modern planes to meet the surging demand for air travel. Just eight years later, AA accomplished another significant feat by offering non-stop transcontinental service in both directions across the country.
To accommodate their impressive expansion, American Airlines joined forces with IBM and introduced SABRE (Semi-Automated Business Research Environment), then recognized as the largest available data processing system. This groundbreaking reservation system not only benefited American Airlines but also encouraged travel agencies to adopt it and take advantage of its discounted fares.
American Airlines introduced the AADVANTAGE travel awards program in 1981 as part of their revolutionary marketing programs. In 1982, the company underwent a reorganization and established AMR Corporation as its parent company. This reorganization opened up new possibilities for the company, including the creation of subsidiaries such as AMR Services and AMR Consulting group. Since 1990, American Airlines has successfully achieved several objectives such as expanding its routes worldwide, launching a convenient website for passengers, and forming a customer-driven global alliance called “one world” with other airlines to elevate the standards of global air travel.
In the past three years, the airline industry has faced numerous challenges, with American Airlines experiencing more than its fair share. Despite these difficulties, AA has made significant efforts to turn the company around. They are applying several strategies to overcome these challenges, including lowering costs to remain competitive and providing the expected level of customer service without increasing expenses. AA is also focusing on collaborative efforts, recognizing that recovery will not be easy but remaining hopeful. Through effective cost control and improvements in combined revenue, the company has successfully restored market confidence and improved liquidity.
Despite facing challenges in recent years, American Airlines is a diverse company with multiple sources of income. These include technology (SABRE), networking, marketing (customer services), cargo area, among others, which contribute to its reputation as a strong competitor. While its service may not be top-notch, American Airlines offers competitive prices that fall within the medium range. Depending on the season, AA may even be the preferred choice for flights due to its special discounts. Thus, as a customer, one can trust and depend on American Airlines.
