Strategy Plan for American Airlines Co Research Paper

Strategy Plan for American Airlines Co - Research Paper ExampleThe companys go along priority is to meet or exceed the needs and expectations of their customers by giving them the best travel experience upon boarding, on-board, and upon arrival. This could be done through route lucre optimization, combative pricing, cost structuring, safety and security, and many to a greater extent. The main trust of this paper is to provide a strategy plan for American Airlines Inc. This plan would incorporate competitive strategy that would help the company become the market share leader and largest air carrier in the world. 2. American Airlines, Inc. A. Business Overview i. Company history. American Airways was founded know 1930 through the consolidation of 85 subsidiaries airlines of The Aviation Corporation. American Airways was renamed to its current American Airlines Inc. under the appointment of the new CEO, C.R. Smith the airline is headquartered in Fort Worth, Texas. For some(prenomi nal) years, AA had managed to introduce improvements in terms of technology, fliers program, quality service, etc. making AA the largest in passenger miles and passenger fleet size. AA had maintained its strong presence particularly in the U.S. domestic market, and in 2009, about 38.85 of Americans flying were international- Latin America and Caribbean, 18.7% Europe, 15.6% and Pacific, 4.5% (AMR Corporation, 2010). Since then, AA had been successful and considered to be one of the biggest global airlines that served one-third of the U.S. population (85.7million) and more than 300,000 tons of encumbrance in a year. On a daily basis, the carrier transported an approximately 275,000 passengers between nearly 250 cities in over 40 countries with average daily flights of 3,400. ii. widely distributed operator. AA is one of the largest operators worldwide with a total of 623 active aircrafts as of 2010 and the largest number of international destinations. The carrier has scheduled domes tic flights throughout North America, South America, fundamental America, and other extensive international network in East and South Asia, and Europe. It has been more successful and gain competitive advancement after combining network fleet with AmericanConnection and American Eagle as its regional affiliates. B. Organizational Structure i. 655 Aircrafts/ 260 Destinations/ Dallas Hub AA is wholly owned subsidiary of AMR Corporation which is a publicly-traded company. The accountability and responsibility organise of AA is often disseminated in the organization through the board of directors and a chief executive officer. A large commercial airline like AA has hundreds of smaller displace to points all over the world, and hub airports that include Chicago, Miami, New York, Los Angeles, and Dallas/Fort Worth International Airport - the largest hub. To send passengers to these hubs, AA employed various aircrafts such as Boeing, and ATR, ERJ, Bombardier for American Eagle. Currentl y, AA has 623 aircrafts with more than 621 fleet size and 250 destinations across 40 countries around the world. C. Business Segments i. Domestic (U.S.). The U.S. domestic market is dominated by AA with a market share of 13.7%. The regional carriers of AA, American Eagle and AmericanConnection served as an advantage to the company as the affiliation acquired 7.5% of the total domestic market (Vasigh, Fleming, & Tacker, 2008, p. 14).