1. American Airlines

2. Facts
• World’s third largest airline
• Headquarter : Fort Worth, Texas
• Largest hub : Dallas International Airport
• 2 affiliates : American Eagle & American Connection
• Oneworld airline alliance

3. History
• 1930: Formed as a conglomerate of 82 different
airlines
• 1936: No 1 domestic air carrier
• 1939: Opens up at NYSE
• 1950: Merged with Pan American World Airways

4. History
• 1959: 1st airline to offer east coast – west coast
travel
• 1981: AAdvantage membership is created
• 2001: September 11th hijacks

5. Financial Statement
• Filed for bankruptcy in December 2011
Unblocks $4 billion of cash
• Revenue : 22 billion
• Net income : - 470 million (LOSS)

6. Destinations
• Serves 260 destinations in 4 continents
• Focus city: LaGuardia Airport (New York)
• 4 main hubs
• Dallas (for the Americas)
• Chicago (Europe and Asia)
• JFK New York (Americas and Europe)
• Los Angeles (Asia and Pacific)

7. Fleet
• Over 300 planes in service by Boeing
• Boeing 737 – 800
• Boeing 757 – 200
• Boeing 767 – 200
• Boeing 777
• 200 planes in service by McDonnell Douglas
• MD – 82
• MD – 83
• 260 orders for Airbus
• Goal is to replace McDonnell Douglas aircrafts

8. Membership
• Aadvantage
• Frequent flyer member program founded in 1981
• American Airlines Admirals Club
• Started as an “airline invitation” flyer member
program where celebrities and VIPs were members
• Paid membership program

9. Competitors
• Main competitors
• United Airlines
• Delta Airlines
• Regional airlines
• Southwest airlines etc.

10. Porter’s 5 forces
• Rivalry among competing companies
• Delta and United Airlines have become the major
airline companies in the US and the world
• Low cost airline companies have risen
 HIGH

11. Porter’s 5 forces
• Threat of new entrants
• Huge capital requirements
LOW
• Threat of substitutes
• Need = Transportation
• Short distance = Car, bus or train
• Long distance = None
 MEDIUM LOW

12. Porter’s 5 forces
• Bargaining power of supplier
• There are very few airline manufacturing companies
(Boeing, Airbus, Bombardier etc)
• It is an oligopoly
 HIGH
• Bargaining power of buyer
• Customers have a lot of choice concerning the
airlines they want to use
 HIGH

13. Porter’s 5 forces
• Conclusion
• Very competitive industry
• Suppliers and Customers have a lot of power
American Airlines has to carefully deal with them