Homework Question on American Airlines
- The case study will focus on:
- The historical aspects of the airline: when, where, why, who·
- The size and scope of the airline: fleet size, number of employees, hubs/route structure, regional affiliations, and various other operational measures (RPMs, ASMs, etc.)
- The acquisition of aircraft: Are the airline’s aircraft financed long-term? Are they leased? What are the financial benefits for the airline? ?
- The fiscal health of the airline: long-term debt, creditworthiness, profit/loss statements, market capitalization, load factors, financial ratios, etc. 3
- The fiscal characteristics of the airline’s stock price: stock price (weekly
- The management structure and personnel: key people in the airline, recent personnel (mgmt.) changes, corporate departments, etc.stock price January –April), Has the stock price increased/decreased? Why? What is the airline’s dividend policy
- The management structure and personnel: key people in the airline, recent personnel (mgmt.) changes, corporate departments, etc. .
- The marketing and/or operational strategy employed by the airline.
- What would you say is their key product – what are they known for? How do they rate in terms of on-time performance, passenger complaints, lost baggage? How do these strategies (or lack of) affect the airline financially? The future of the airline: Possible expansions, possible sale of assets, possible fleet changes, possible merger, layoffs/hiring – where will this airline be in five years? – The best reference regarding financial data will be the airline’s annual report(s).
- Also,please incorporate financial charts, tables, graphs in the case study
Homework Answer on American Airlines
Historical aspect of the American Airline
The American Airline is one of the largest Airlines in the United States. American airline is among the corporations that make up One World airline alliance. It is the major carrier between the North American countries and the Latin America. On December 2013, this company merged with United States airways to become the largest airline on earth.
The story of the American Airlines can be traced back in the year 1926, when a young aviator by the name of Charles A Lindbergh carried a bag of mails from the city of Chicago to St Louis. This is was on April 15, 1926 (American Airline Groups par 2). During that time, Lindberg was the chief pilot for the Robertson aircraft operation in the city of Missouri. The company was the second company that had a U.S airmail contract, the company was among those that consolidated to form the modern day American Airlines.
The company was formed as a result of the acquisition of many aircrafts, the company mainly profited by carrying mails (American Airlines par 3). In 1934, the airline was bought by E.L cord, he renamed it the American Airlines. This company revolutionized the air travel by coordinating with Donald Douglas in the development of the DC-3, the Airlines was the first carrier to fly it, this made the airline become the first to earn profit through the transportation of passengers. Currently the organization is owned by AMR Corporation that is located in Texas.