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Agenda The Airline Industry Impact, Opportunities and Challenges AmericanAirlines® Company Profile and Strategic Pillars AmericanAirlines ® Purchasing Department What AmericanAirlines ® has to offer… 2
The Airline Industry Impact, Opportunities and Challenges AmericanAirlines ® Company Profile and Strategic Pillars AmericanAirlines ® Purchasing Department What AmericanAirlines ® has to offer… 3
The Airline Industry Impact The airline industry impacts people on a professional and personal level: Professional The U.S. airline is a $185 billion industry The global airline industry employs 29 million people Personal U.S. airlines carried 303 million domestic passengers and 42 million international passengers during the first six months of 2009 4
The Airline Industry Challenges and Opportunities Opportunities     Moving towards energy efficient, environmentally friendly fleets.    Code-share Agreements:  ,[object Object]
GOL in Brazil.  Smart negotiations and cost-savings strategies make the difference.  Challenges     Fierce Competition between carriers ,[object Object]
 Low-Cost Carriers.  Capital Intensive Industry.   Unstable economic environment. 5
The Airline Industry Impact, Opportunities and Challenges AmericanAirlines® Company Profile and Strategic Pillars AmericanAirlines ® Purchasing Department What AmericanAirlines ® has to offer… 6
AmericanAirlines® Company Profile In the summer of 2009 AmericanAirlines®, the world’s 2nd largest airline, carried more international passengers than any other U.S. carrier AmericanAirlines® contributes more than $150 billion per year to the U.S. economy, by serving 250 cities in over 40 countries with more than 3,400 daily flights. Every day AmericanAirlines®… Flies about 270,000 passengers  Receives more than 239,000 reservations calls.  Handles more than 300,000 pieces of luggage.  7
AmericanAirlines® Strategic Pillars Lower Costs to Compete Less fleet types and less complex aircraft routings Pull Together, Win Together > $335M saved in fuel costs in  2008 Fly Smart Improved Business Class seats & new in-flight food offerings Build a Financial  Foundation 2008: $3.6B in cash and short-term  investments 8
The Airline Industry Impact, Opportunities and Challenges AmericanAirlines ® Company Profile and Strategic Pillars AmericanAirlines ® Purchasing Department What AmericanAirlines ® has to offer… 9
AmericanAirlines ® Purchasing Department Purchasing       Vice-President Fuels Management and Transportation Dallas, TX  Airport and Customer Services Dallas, TX Maintenance and Engineering Tulsa, OK Aircraft Programs Fort Worth, TX AmericanAirlines®’s Purchasing Department buys a great assortment of goods and services… From a $0.02 bolt and a $1 Soda Can…  To a $7,000,000 Flight Simulator 10
AmericanAirlines ® Purchasing Department Purchasing       Vice-President Aircraft Programs  11 Fuels Management and Transportation Airport and Customer Services Maintenance and Engineering ,[object Object]
Non-core Advertising
Passenger services, Security and Ground Handling
Skycap and shuttles
Engines and Engine Materials
Wheels, Tires, Landing Gear
Avionics Instruments / Surveillance ad Navigation
Tooling – Test Equipment
Dom. and Intl. Fuel
Fueling services into plane for AA/AE
Transportation (M&E, Food & Beverages and COMAT)
Customs/Duties
Seats, Bins and Interior Walls
Monitors and Control Units

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AA Purchasing

  • 1. 1
  • 2. Agenda The Airline Industry Impact, Opportunities and Challenges AmericanAirlines® Company Profile and Strategic Pillars AmericanAirlines ® Purchasing Department What AmericanAirlines ® has to offer… 2
  • 3. The Airline Industry Impact, Opportunities and Challenges AmericanAirlines ® Company Profile and Strategic Pillars AmericanAirlines ® Purchasing Department What AmericanAirlines ® has to offer… 3
  • 4. The Airline Industry Impact The airline industry impacts people on a professional and personal level: Professional The U.S. airline is a $185 billion industry The global airline industry employs 29 million people Personal U.S. airlines carried 303 million domestic passengers and 42 million international passengers during the first six months of 2009 4
  • 5.
  • 6.
  • 7. Low-Cost Carriers. Capital Intensive Industry. Unstable economic environment. 5
  • 8. The Airline Industry Impact, Opportunities and Challenges AmericanAirlines® Company Profile and Strategic Pillars AmericanAirlines ® Purchasing Department What AmericanAirlines ® has to offer… 6
  • 9. AmericanAirlines® Company Profile In the summer of 2009 AmericanAirlines®, the world’s 2nd largest airline, carried more international passengers than any other U.S. carrier AmericanAirlines® contributes more than $150 billion per year to the U.S. economy, by serving 250 cities in over 40 countries with more than 3,400 daily flights. Every day AmericanAirlines®… Flies about 270,000 passengers Receives more than 239,000 reservations calls. Handles more than 300,000 pieces of luggage. 7
  • 10. AmericanAirlines® Strategic Pillars Lower Costs to Compete Less fleet types and less complex aircraft routings Pull Together, Win Together > $335M saved in fuel costs in 2008 Fly Smart Improved Business Class seats & new in-flight food offerings Build a Financial Foundation 2008: $3.6B in cash and short-term investments 8
  • 11. The Airline Industry Impact, Opportunities and Challenges AmericanAirlines ® Company Profile and Strategic Pillars AmericanAirlines ® Purchasing Department What AmericanAirlines ® has to offer… 9
  • 12. AmericanAirlines ® Purchasing Department Purchasing Vice-President Fuels Management and Transportation Dallas, TX Airport and Customer Services Dallas, TX Maintenance and Engineering Tulsa, OK Aircraft Programs Fort Worth, TX AmericanAirlines®’s Purchasing Department buys a great assortment of goods and services… From a $0.02 bolt and a $1 Soda Can… To a $7,000,000 Flight Simulator 10
  • 13.
  • 15. Passenger services, Security and Ground Handling
  • 17. Engines and Engine Materials
  • 19. Avionics Instruments / Surveillance ad Navigation
  • 20. Tooling – Test Equipment
  • 22. Fueling services into plane for AA/AE
  • 23. Transportation (M&E, Food & Beverages and COMAT)
  • 25. Seats, Bins and Interior Walls
  • 28.
  • 29. AmericanAirlines® Commodity Managers IMPACT Developing Strategies at different levels and analyzing their effects and efficiency Negotiating Deals VISIBILITY Becoming central in all relationships with internal customers and major suppliers Communicating Strategies and Results to Senior Management Throughout AA RESPONSIBILITY AND FOCUS Handling Large Amounts of Spend Implementing Continuous Process Improvement Monitoring and Resolving Supplier Performance 13
  • 30. VicePresident Managing Director Manager Sr. Commodity Manager Sr. Financial Analyst Commodity Manager Financial Analyst The Purchasing Experience “One Organization, Many Destinations” 14
  • 31. AmericanAirlines® The Purchasing Experience Todd RiceBowling Green State University BS in Purchasing/Materials Mgmt Sr. Commodity Manager, Airport Services Domestic and International Catering Responsible for $100 million spend on services in Europe, Asia and the Pacific Airport Handling, Cargo, Passenger, Security, other miscellaneous services Extensive international travel to AA stations and suppliers to assess needs, negotiate contracts, manage relationships Joined AA in 1995 15
  • 32.
  • 33. $30M Annual Spend in Amenity kits, Bose headsets, duvets, pillows
  • 34. Audited more than 15 supplier facilities in China
  • 35. Sr. Commodity Manager- Food Components (2006-2007)
  • 36. Traveled around the world coordinatingthe onboard retail program reducing food cost by $9M
  • 37.
  • 38. AmericanAirlines ® What Recent Hires Said… “The people are some of the brightest and most talented I’ve worked with.” “The industry and competition are always changing, so there is never a dull moment.” “I love the leeway I’m given in decision making, and the results of my actions are seen almost immediately.” “American challenges me during the week and gives me the opportunity to experience the world when I’m not in the office.” “Happy people, fascinating business.” “AA offers the opportunity for a wide variety of assignments during a career without changing companies.” “American provides all of the challenges of a consulting career, without the hours.” 18
  • 39. The Airline Industry Impact, Opportunities and Challenges AmericanAirlines ® Company Profile and Strategic Pillars AmericanAirlines ® Purchasing Department What AmericanAirlines ® has to offer… 19
  • 40. AmericanAirlines® Exciting Locations: DFW The “Metroplex” is a great area for sports fans, art lovers and shopping connoisseurs Four professional sports teams, NASCAR, horse racing, 150+ golf courses, 60 lakes and 50,000 acres of parks within 100 miles of D/FW Every major city in the U.S. is less than 5 hours away AmericanAirlines offers more than 35 non-stop international routes from DFW Airport. 20
  • 41. AmericanAirlines® Exciting Locations: Tulsa One of Forbes Magazine’s 5 Best Cities to live in the U.S. With 400,000 people, Tulsa is described as “a blend of the best of urban and rural America” Foder’s Travel Publications lists Tulsa as one of its outstanding “undiscovered” travel destinations Direct Flights to Chicago, Dallas and St. Louis puts the entire world at your reach in under 2 hours. 21
  • 42.
  • 44. Monthly Brownbag Lunches with your fellow MBAs from the Top 20 SCM MBA Programs in the country
  • 46. Performance Evaluations oriented towards developing leadership inside AmericanAirlines®22
  • 47. AmericanAirlines® Employee Benefits Application of your education and Continuous training Mentoring, Coaching and Networking Opportunities An invigorating, challenging environment in a competitive and exciting industry Medical, Dental, 401K, Supplemental Insurance, Life Insurance, Disability... 23
  • 48. Argentina AmericanAirlines® Employee Benefits THE MOST EXCITING TRAVEL PRIVILEGES!!! Travel Benefits that will put the world at your feet since day one! 24
  • 49.
  • 50. Do you have the initiative and drive to take advantage of AmericanAirlines’ opportunities?
  • 51. Can you work with Shop Mechanics, Engineers, Purchasing Assistants, Business Graduates and Doctors in Aerospace Sciences… on a single day?
  • 52. Are you passionate about one of the most interesting industries in the world?
  • 53. Do you possess a strong, action-oriented work ethic?25 AmericanAirlines® Are you a fit…?
  • 54. 26

Notas del editor

  1. Opportunities inside Purchasing
  2. Video?
  3. Q&A Session…