1. American Airlines
and the
International Market
Group #9:
Pamela Sohal
Garrett Schick
Mary Catherine Schoals
Adam Sharpe

2. History: Past & Present
• Began in 1930 as an air mail carrier
• Revolutionized airline industry by
creating DC-3 in 1934
• Helped the war effort by becoming a
military airline during World War 2
• Entered international market in the
1960's
• Joined OneWorld Alliance in 1999
• Closed merger with U.S. Airways in
2013

3. Government Intervention & Deregulation
• Definition of Intervention
• DOT and FAA
• ATOS and Airport
Compliance Program
• Airline Deregulation Act of
1978
• CAB disestablished

4. Open Skies
• Agreements with 115
countries
• Routes
• Recent appeals by
legacy carriers

5. Government Intervention and American
Airlines
• 9/11
• Flight 11
• Opened
vulnerabilities
• Complete Overhaul
of System
• TSA
• DOHS
• Cost/Time/Demand

6. Government Intervention and American
Airlines
• Overflight Fees
• Nine “Freedoms of
the Air”
• Most countries have
some variation/all
different
• Balance between
distance and
overflight fees
• American Airlines
looking for better
software

7. Government Intervention and American
Airlines
• Emissions
• Balance between
different governing
bodies
• Cap and trade
systems
• Investments in
infrastructure
• Fuel Prices
• Volatile
• Low margin vs. high
operating costs

8. Past and Future Handlings
• Regulation
• Open Skies Agreements
• Political Action
Committee (PAC) –
1985
• A4A, IATA, RAA
• Safety
• Aviation Transportation
Security Act and the
TSA
• Partnering with
Homeland Security

9. Past and Future Handlings
• Profitability
• Aircraft fuel and Fuel
Hedging
• Environmental Issues
• New Aircraft
• Aircraft weight reduction
savings

10. Recommendation for Merger
• Adequately inform
customers of the changes
• Focus on quality customer
service
• Properly Train Employees
• Offer “in-office” training
• Inform of all merger effects

11. Thank You