This is where the company could have possible candidates go through a pre-hire test that will determine their levels of knowledge. At which point, the employees can then be divided into different levels of training ranging from experienced to inexperienced. Where, those that are the most experienced will receive on the job / in house training to prepare them for the position. While those employees who require more extensive amounts of training could be sent to the company training facilities, to be introduced to the various company policies / procedures and technology. The objectives for this position are: to ensure that all customer service representatives can be able to work independently, with little to no supervision. The techniques that the company should consider using, is augmenting the existing training that new employees have received with company specific training. Where, an evaluation will help management identify how many experienced customer…...
mlaBibliography
Employee Benefits. (n.d.). Retrieved March 22, 2010 from American Airlines website: http://www.aacareers.com/us/frame_index.htm?benefits.shtml
Summary Report. (2010). Retrieved March 22, 2010 from One Net website: http://online.onetcenter.org/link/summary/43-4181.00
American Airlines: The AAdvantage Airline
The stark silver carriers with the tri-color stripes are seen in airports around the world, and though they may have a simplistic approach to their exterior, American Airlines still remains one of the largest airlines in the world, traveling to over 242 destinations in over 50 countries (OneWorld, 2003).
The story of American Airlines parallels the history of Charles Lindbergh who was chief pilot for an aviation company based out of Missouri. It was one of many companies that eventually consolidated to form American Airways, which became American Airlines in 1934. That year saw C.R. Smith become president of American, and "on June 25, 1936, American was the first airline to fly the Douglas DC-3 in commercial service. On Feb. 16, 1937, American carried its one-millionth passenger." (History, 2003).
American Airlines could be called the 'airline of firsts' as beyond being the first commercial service and nations number…...
mlaBibliography
American's Routes
AMRCorp Website, 2003.
Retrieved from: www.amrcorp.com/facts/aircodes.htm
Female Pilots Make History
American Airlines
AMR is the parent company of American Airlines and American Eagle and represents a poor investment opportunity for many reasons. AMR lost 761 million dollars in 2004 with more bad news expected. AMR and the airline industry in general are affected by two negative industry dynamics, high fuel costs on the supply side and low revenue yields on the demand side (Chakravorty, 2005). Jet fuel accounts for twelve to fourteen percent of airlines' operating costs and is the industry's second-biggest expense after labor. Crude oil prices have risen eleven percent since the start of 2005. Further, airline fares are at historic lows and rivals such as Delta Airlines has ignited fare wars after capping its coach fares at $499 each way in January 2005 (Reed, 2005). The low-cost model of carriers such as Southwest Airlines and Jetlue are also putting price pressures on the industry. Less revenue and higher…...
mlaBibliography
Airlines: New thinking, please. (2004, May 3). BusinessWeek online. Retrieved January 31, 2005 from Web site: http://www.businessweek.com/magazine/content/04_18/b3881144_mz029.htm
American Airlines unions approve concessions deal. (2003, April 15). USA Today. Retrieved January 31, 2005 from Web site: http://www.usatoday.com/travel/news/2003/2003-04-15-amr-vote2.htm
Chakravorty, J. (2005, January 4). Airlines shares fall as oil prices rise. Retrieved January 31, 2005 from Web site: http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh69917_2005-01-24_19-48-44_n24162794_newsml
Reed, K. (2005, January 31). Frills a casualty in air wars. The Boston Globe. Retrieved January 31, 2005 from Web site: http://www.boston.com/business/articles/2005/01/06/frills_a_casualty_in_air_wars/
Asia-Pacific carriers and routes are expected to earn a large profit, Latin America to be the only region to deliver a third consecutive year of profits; while North America, Europe, the Middle East will post far lower than average profits, with Africa likely experiencing a $100 million loss (IATA, 2011).
orks Cited
American Airlines Receives Texas Commission on Environmental Quality. (2006, May 11). Retrieved from Airline Industry Information Service: http://findarticles.com/p/articles/mi_m0CU/is_2006_May_11/ai_n16359869/
American Airlines. (2011, June). About Us. Retrieved from American Airlines: http://www.aa.com/i18n/aboutUs/main.jsp
American Airlines. (2011, July 20). AMR Corporation Announces Largest Aircraft Order in History. Retrieved from News Release on Airline Purchases: http://aa.mediaroom.com/index.php?s=43&item=3286
Cameron, D. (2011, January 5). American Airlines ants Expedia, Orbitz to Come Around. Retrieved from The all Street Journal: http://online.wsj.com/article/SB10001424052748704723104576061891746793776.html
CNN Travel. (2010, October 12). Air Travel Report: DId in Delays, Spike in Complaints. Retrieved from CNN.com: http://www.cnn.com/2010/TRAVEL/10/12/air.travel.consumer.report
Forty, S. (1997). American Airlines. Dallas, TX: Ian Allan Publishing.
IATA. (2011, June 6). Airline Industry 2011…...
mlaWorks Cited
American Airlines Receives Texas Commission on Environmental Quality. (2006, May 11). Retrieved from Airline Industry Information Service: http://findarticles.com/p/articles/mi_m0CWU/is_2006_May_11/ai_n16359869/
American Airlines. (2011, June). About Us. Retrieved from American Airlines: http://www.aa.com/i18n/aboutUs/main.jsp
American Airlines. (2011, July 20). AMR Corporation Announces Largest Aircraft Order in History. Retrieved from News Release on Airline Purchases: http://aa.mediaroom.com/index.php?s=43&item=3286
Cameron, D. (2011, January 5). American Airlines Wants Expedia, Orbitz to Come Around. Retrieved from The Wall Street Journal: http://online.wsj.com/article/SB10001424052748704723104576061891746793776.html
American Airlines
ecently, American Airlines filed bankruptcy protection in order to allows it to continue operating. While bankruptcy for a company or a person is not looked well upon, it seems that there is a double standard when the operation of private companies is compared to methods used by the U.S. Government to stay afloat, such methods may also look askance at its extreme measures to remain solvent and to continue operating. Despite the negative connotations in bother instances, almost any issue contains pros and cons and balancing them will hopefully provide us with a good solution.
Analysis-Comparison and Contrast
The Chapter 11 bankruptcy that was announced in November of 2011. Its most recent incarnation has entailed the announcement of 14,000 staff cuts in order to cut costs and chart a way out of bankruptcy (Hicken, 2012). Unfortunately for American airlines, it almost seems that the biggest con they should have considered was…...
mlaReferences
Dorward, L. (2012). Pros & cons of chapter 11 bankruptcy. Retrieved from http://www.ehow.com/list_6676743_pros-cons-chapter-11-bankruptcy.html.
Glass-steagall act (1933). (2012). Retrieved from / glass_steagall_act_1933/index.html.http://topics.nytimes.com/topics/reference/timestopics/subjects/g
Goldfarb, A.A. (2011, August 6). S&p downgrades u.s. credit rating for first time. Retrieved from credit-rating/2011/08/05/gIQAqKeIxI_story.html.
Gregory, P.D. (2012, June 6). American airlines shows the corruption of obama. Retrieved from http://www.forbes.com/sites/paulroderickgregory/2012/02/06/american-airlines-shows-the-corruption-of-obamas-gm-bailout/ .
American Airlines/U.S. Airways merger issues
In January 2012 U.S. Airways Group, the parent company of U.S. airways, expressed interest in acquiring AM Corporation, American Airlines parent company. This merger would add 1.5 billion dollars in revenue reduce competition in various cities and create one of the largest airlines in aviation history. For shareholders and workers this is a great thing. Some of the benefits are more destinations, more flights and the possibility of pay increment in all departments. All of these things are beneficial to individuals but there are a lot of potential issues as well. The issues being discussed in this case study are the labor unions and how they will manage to take the responsibilities of transferring employees over, U.S. Airways leaving the Star alliance to join One World, employees that could lose their jobs, including American Airlines CEO Tom Horton. There are a lot of comparing and contrasting…...
mlaReferences
Tully, S. (2013). Inside The World's Biggest Airline Merger. Fortune, 167(4), 169.
U.S. Airways Group, Inc. SWOT Analysis. (2012). U.S. Airways Group, Inc. SWOT Analysis, 1-7.
Chapter 6: Airlines. (2013). Travel & Tourism Market Research Handbook, 74-79.
PR, N. (2013, July 3). American Airlines Launches New AA.com African-American Site To Celebrate Black Travel And Community. PR Newswire U.S..
American Airlines
Discuss how senior management's short-term focus on stock price in a publically traded company can lead to unethical behavior.
If senior management has a short-term focus on stock price as its central motivation, that can lead to unethical behavior. The role of management is to increase the wealth of the shareholders (Friedman, 1970), something that must be done over long run, not the short run. A short-run focus on the stock price does not have to be mutually exclusive to building long-run value, but it often is. Management may either utilize strategies that favor a small short-term return over a broader long-term improvement or it may engage in various forms of accounting fraud to make the company appear more profitable than it actually is. The former is more of a policy choice; it may not be unethical as much as it is stupid. The latter is unethical and all times…...
mlaWorks Cited:
Friedman, M. (1970) The social responsibility of business is to increase its profits. New York Times Magazine. Retrieved November 23, 2012 from http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html
Glassman, J. (2012). Once it emerges from bankruptcy, let American Airlines stay American. Forbes. Retrieved November 23, 2012 from http://www.forbes.com/sites/jamesglassman/2012/10/16/once-it-emerges-from-bankruptcy-let-american-airlines-stay-american/
Hughes, J. & Schlangenstein, M. (2012). American Air faces record $24.2 million fine for 2008 maintenance lapses. Bloomberg. Retrieved November 23, 2012 from http://www.bloomberg.com/news/2010-08-26/amr-faces-24-million-faa-fine-for-2008-maintenance-lapses-on-md-80-planes.html
McLaughlin, D. (2012). American Airlines seek extension for bankruptcy plan. Business Week. Retrieved November 23, 2012 from http://www.businessweek.com/news/2012-10-16/american-airlines-seeks-extension-for-filing-bankruptcy-plan
In order to reach and maintain this business standards, the company has created a set of basic rules for itself, regarding the respect for the customer and the ethic principles.
One of the sources of competitive advantage that the company benefits from is represented by its Human Resources policy. The importance of the relation that the company has with the members of its staff is worth underlining. One third of the American Airlines expenses go to wages and benefits. The proper motivation of the employees makes the company function in an efficacious manner. The god relations that American Airlines has are not just with the employees themselves. The company has reached agreements with three major labour unions, obtaining mutual advantages in terms of costs and payments.
Another source of competitive advantage for American Airlines is represented by the strategies which it uses in order to obtain and maintain the loyalty of…...
mlaBibliography
American Airlines, May 9, 2007, http://www.aa.com/index_us.jhtml
AMR Annual Report, (2005), May 10, 2007 www.shareholder.com/aa/downloads/ar2002.pdf
Delta Airlines, Wikipedia, the free encyclopedia, May 9, 2007, http://en.wikipedia.org/wiki/Delta_Airlines
Delta Airlines, May 9, 2007, http://www.delta.com/about_delta/career_opportunities/index.jsp
AMEICAN AILINES AND U.S. AIWAYS MEGE
PLEASE ASSIGN THIS PAPE TO BETTY 2115322 QUESTION MUST BE TYPED IN BOLD AND NUMBEED Assignment 2: Mergers Acquisitions Due Week 6 worth 200 points Use Internet research a publicly traded company United States undergone a merger acquisition (3) years.
Examine the circumstances that resulted in the merger or acquisition for the selected company. Speculate on two (2) reasons why the resulting decision to merge or to acquire / be acquired was made.
American Airlines parent company AM Corporation had filed for bankruptcy in 2011 because of high costs of leasing aircrafts and labor Soyoung Kim, Feb 14, 2013.
American Airlines had an option of merging with another airline even though it had filed for bankruptcy. The parent company could not service its debts and creditors had no way of recouping their money. American Airlines had a large fleet and this made the airline suitable for a merger…...
mlaReferences
J. (Dec 2013). As Merger Closes, AA And U.S. Airways Get To Work. Retrieved from Larsson, R., & Finkelstein, S. (1999). Integrating strategic, organizational, and human resource perspectives on mergers and acquisitions: A case survey of synergy realization. Organization Science, 10(1), 1-26.http://www.businesstravelnews.com/More-News/As-Merger-Closes,-AA-And-U.S.-Airways-Get-To-Work/?ida=Airlines&a=procBoehmer ,
Maxon, T. (Jan 29, 2014). American Airlines to offer veteran flight attendants $40,000 to deplane, from http://www.dallasnews.com/business/airline-industry/20140129-american-airlines-to-offer-veteran-flight-attendants-40000-to-deplane.ece
Sharf, S. (Jan 28, 2014). Post-Merger, American Airlines Group Reports Stronger Than Expected Combined Earnings, from http://www.forbes.com/sites/samanthasharf/2014/01/28/post-merger-american-airlines-group-reports-stronger-than-expected-combined-earnings/
Soyoung Kim, a K.J. (Feb 14, 2013). American to unite with U.S. Airways to create No.1 carrier, from http://www.reuters.com/article/2013/02/14/us-americanairlines-merger-idUSBRE91D0MF20130214
American Airlines is "the nation's No. 3 airline by traffic" (Spector, M. & Carey, S. April 4, 2012) and reaches "250 cities in 40 countries with, on average, more than 3,400 daily flights" (American Airlines.com. 2012). In this analysis the booking prices for a roundtrip flight between New York: John F. Kennedy Airport and Los Angeles: International Airport will be researched.
The parameters of this exercise are designed to ensure the most consistent results. As such, "departure fares per person are in U.S. Dollars (USD), based on Round-Trip purchase" (American Airlines.com. 2012) with a non-stop flight. Data is based on a fixed seven day trip, because changing the length of the trip impacts the rate; and the departure time each day is variable because flight times are not always available each day. American Airlines offers a First Class / Business option and an Economy option; in addition there are six additional…...
Neither United Airlines nor Delta Airlines has been able to generate substantial cost savings in terms of fuel, albeit for circumstances beyond their control.
Continental Airlines
In contrast to the other airlines, "Houston-based Continental Airlines Inc., the fourth-largest airline in the U.S., has actually invested in customer-service improvements, increased its routes, and kept prices steady, all while managing to lose the least money last year," an impressive statistic when one considers that while Continental lost $68 million in 2005, Delta lot $3.8 billion. Continental has deployed a unique strategy of emphasizing one core competency. It was unable to slash fares drastically because higher fuel and labor costs, and it could not compete with the prices of value carriers, so it instead identified Continental's most valuable customers and offered them unique customer services such as automated tools and greater efficiency. Technology is its emphasis in customer service
D'Agostino 2006:1).
For example "if an airplane…...
mlaWorks Cited
D'Agostino, Debra. (14 July 2006). "Case Study: Continental Airline's Tech Strategy
Takes Off." CIO. Retrieved 1 May 2007 at http://www.cioinsight.com/article2/0,1540,1989438,00.asp
Katz. David. (15 Mar 2001) "Delta's Strategy for Reducing Turbulence." CFO.com. Retrieved 1 May 2007 at http://www.cfo.com/article.cfm/2992209
Porter's Generic Strategies." (1999) Quick MBA. 1999. Retrieved 1 May 2007 at http://www.quickmba.com/strategy/generic.shtml
Furthermore, while it is true that American recently implemented a refund and $50 voucher guarantee for consumers who find a lower possible fare to their destination, also to keep up with pricing pressure from low-cost carriers, Continental had already implemented such a guarantee first. This may contribute to the industry perception that once-dominant American Airlines is merely playing catch-up with even major carrier rival in terms of consumer incentives and is not offering substantial product innovation and superior customer service. ("American Airlines struggling to hang on to price-shopper market" 2005, Reuters).
According to Michael Porter's Five Forces analysis of market behavior, the airline industry traditionally has had a low threat of entry -- there are numerous regulatory and financial blocks to easy entry and exit of major suppliers. It is harder, in other words, to open up an airline than a new pizza parlor down the block. However, with the…...
mlaWorks Cited
American Airlines struggling to hang on to price-shopper market." (1 Feb 2005). Provided by Reuters News Target Network. Retrieved 21 Apr 2007 at http://www.newstarget.com/004424.html
Five Forces Analysis." (2000). Marketing Teacher Ltd. 2000-2007. Retrieved 21 Apr 2007 at http://marketingteacher.com/Lessons/lesson_fivefoces.htm
Southwest's interest coverage is comfortable, at 3.909. Southwest's operating leverage is high, as they are in a low margin business. They had a negative change in EIT over the period, as did AMR, despite both having higher sales. Southwest's combined leverage is 1.505, much stronger than AMR, which suffered a huge decline in earnings per share despite having higher sales.
10) the weighted-average cost of capital for Southwest is 0.56%. This is based on a risk free rate of 1.2% (three-month T-ill) and a historic return on the Dow Jones of 3.2%. For AMR, the WACC is 3.53%. This reflects that AMR's equity has a negative value, and that they do not pay dividends. Their cost of capital is the cost of their debt.
11) LUV's chart is very stable, whereas AMR's is not. AMR has been highly volatile in the past couple of years, showing strong gains and then a…...
mlaBibliography
Ratios except ROIC from Reuters. Retrieved April 10, 2008 at http://stocks.us.reuters.com/stocks/ratios.asp?symbol=LUV&WTmodLOC=R2-Ratios-1-More
ROIC, leverage and Dupont calculated from data from the latest quarterly and annual reports. Retrieved from Southwest.com and American Airlines.com on April 9, 10, 11, 2008.
On the WACC, betas, risk free and market return from MSN MoneyCentral. Retrieved April 11, 2008 http://moneycentral.msn.com/detail/stock_quote?Symbol=luv
Southwest corporate history from Southwest.com, retrieved April 8, 2008 at (April7, 2008) Southwest Airlines Travel Quality Ranked No 3. Business First of Columbus Retrieved April 8, 2008 at http://www.bizjournals.com/columbus/stories/2008/04/07/daily9.htmlhttp://www.southwest.com/about_swa/airborne.html
FAA's runnings-in with American Airlines shows all the problems of organization that the government faces as well as quite accurately point to the truth of the sentence that the people come last. And yet this sentiment may not be as precisely accurate as seen in first impressions since the FAA's intentions in procrastinating the airline was ultimately for the safety of the people. The only problem was the way in which it was done, indicating all the limitations involved in government organization.
The case study reports that in 2008, the FAA decided to make longstanding evaluation and repairs on the wiring specifications of American Airlines. Federal inspectors had long ago discovered that American Airlines had failed to comply with Federal Aviation Administration (FAA) wiring safety requirements that groups of wires need to be tied tightly together at intervals of more than an inch. The surveillance, which should have been done…...
mlaImmediate and consistent action is necessary for it to regain its direction and confidence of the people
The FAA, for instance, may, as American Airlines suggested have run its operations over various days whilst keeping other planes in the air. It may certainly have carried this out much earlier instead of allowing the situation to drag on for over a year and a half. It may have also conducted its affairs in a far more dignified, thoughtful manner perhaps by explaining the rationale for its actions to the passengers and the airline, specifically mollifying them with their intention of averting an unlikely but still possible catastrophe. It could have pointed to the crash of the TWA Flight in July 1996 that was plausibly related to faulty wiring. This would almost certainly have mollified the public.
And yet the problem, ultimately and always, returns to the specter of government disorganization. Government has tried in various ways to deal with its problems and to reduce some of the disorganization. As yet, it has never totally succeeded. Once it does, it will be better able to meet its concerns in a timelier more effective manner, accordingly more likely pleasing its citizens.
These were confirmed by the changes in the longitudinal (0.20 to 0.14 G), lateral (0.05 G. To the left) and normal load factors (1.0 to 0.6 G). [NTS ]
The data also showed that between the critical time of 0915:52 and 0915:58.5 five separate rudder movements (1.7 inches right to 1.7 inches left, 1.7 inches right, 2.0 inches right, 2.4 inches left, and 1.3 inches right) were noticeable. The FDR data also showed extreme and alternating control wheel movements during this time (64° to the right at 0915:51.5, 78° (full) to the left at 0915:53.5, 64° to the right at 0915:55.5, and 78° to the left at 0915:56.5.). [NTS] The enormous aerodynamic stress due to these extreme control operations of the rudder ultimately resulted in the breaking away of the vertical stabilizer and the crash of the aircraft. It was found that the vertical stabilizer exceeded the design loads by…...
mlaBibliography
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2) Ellen Engleman Conners, (Oct 29, 2004), 'Message from the Chairman', retrieved Oct 30th 2010, from, http://www.ntsb.gov/Speeches/engleman/cc/cc20041029.pdf
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