International business environment
Introduction
This assignment is about how the international business environment impact a enterprise grown. The reason of why I choose American Airlines again is for the last two assignment I have had a deep understand of this enterprise, so I'd like to analysis the growth of American Airlines in another angle, that will be interesting.
About American Airlines
There are many air transport companies in The USA , The American Airlines is one of the most representative companies in The USA , not only the scale of the company, but also was the first company that combined e-business with the traditional business model . American Airlines was founded in 1930, formerly American Airways, Inc.It was combined by more than 80 small airlines. American Airways, Inc. officially became American Airlines, Inc. in 1934, the same year C.R. Smith became president of the company. The airline began trading on the New York Stock Exchange on June 10, 1939. Originally headquartered in New York City, where it continues to maintain a strong presence, American moved its headquarters to Fort Worth, Texas, in 1979 and has since become one of the largest airlines in the world, contributing nearly $100 billion to the U.S. and international economies. It has helped create more than 900,000 jobs worldwide, and supported approximately 1,400 non-profit organizations worldwide. American and its regional airline affiliates, American Eagle and the American Connection airlines, serve approximately 250 cities in over 40 countries with, on average, 3,400 daily flights. American's network covers points throughout North America, the Caribbean, Latin America, Europe and the Pacific. American has five major cornerstone markets: New York, Los Angeles, Dallas/Fort Worth, Chicago O'Hare, and Miami where it's network resources are concentrated and which connect some of the largest U.S. population centers for business travelers and are international gateway cities. (American Airlines 2012)
Alliances and Affiliates
The oneworld member airlines and their affiliate airlines extend the American Airlines' network to some 800 destinations in 150 countries. oneworld is the world’s premier global airline alliance. It brings together some of the best and biggest names in the airline business – Airberlin, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, LAN, Qantas, Royal Jordanian and S7 Airlines plus around 20 affiliates including Austria’s NIKI, American Eagle, Dragonair, LAN Argentina, LAN Ecuador and LAN Peru. Malaysia Airlines will join later this year, with Kingfisher Airlines also a member elect. Mexicana is an inactive member.
Between them, oneworld’s current member airlines:
• Serve some 800 airports in 150 countries, with more than 8,750 daily departures.
• Offer more than 550 airport lounges for premium customers.
• Carry almost a million passengers a day on a combined fleet of nearly 2,500 aircraft.
• Generate around US$ 100 billion annual revenues in total.(Oneworld 2012)
American Airlines has established joint business agreements with British Airways and Iberia, Japan Airlines, and Qantas that provide customers with more destinations, more flights and more fares to choose from, while delivering continuous and consistent service excellence throughout each airline.
Also American Airlines offers an extended network throughout North America via its regional partners, American Eagle and AmericanConnection.(American Airlines 2012)

Growth source( 2011 annual report)

source(2006 annual report)

From the graph, It shows that from 2002 to 2011 the total operating revenues is increase slow and stabilized, but in 2009 there was a terrorist incident which is 911 affects the total operating revenues of American Airline that directly lead to revenue declined, and after that it gradually restore.
In the beginning the mode of entry the international market of American Airlines is joint ventures because the American Airline is combine by many small airlines company, so they know how important of the cooperative partners, and the strategy of enter international market, for example: American Airlines has decided to expand operations into the greater China market. A thorough analysis of the marketplace has taken place and the final remaining detail that needs to be defined is the airlines strategy for the foreign direct investment (FDI) that will be required to service successfully the Chinese travel market. While much of the expansion into the China market will leverage local resources, direct investment in the Chinese infrastructure will be needed. As such, the FDI analysis will focus on the expansion of airport facilities, airport and city ticket offices and a reservation center. The structure of the FDI analysis will include an executive summary of American Airlines overall China strategy, modes of entry and associated risks, funding of the initiative and contingency plan should the airline need to change strategies mid implementation.（Market entry strategy 2012 ）

Performance
What American Airlines have done in last ten years, there is a list that brief the main points:
1.In a move to make popular Web fares more widely available to consumers while reducing its total distribution costs, American on Sept. 25, 2002, announced its innovative EveryFare program. With EveryFare, AA provides traditional travel agents in the U.S. and Canada the option to access and sell its very low Web fares, previously offered only via American's own Web site, AA.com, and select low-cost distribution channels. In exchange, travel agents provide AA with long-term distribution cost savings through a creative cost-sharing arrangement.
2.On April 24, 2003, Edward A. Brennan was named Executive Chairman of AMR Corporation and Gerard J. Arpey became Chief Executive Officer and President of AMR.
3.Gerard J. Arpey was elected Chairman of AMR Corporation and American Airlines, Inc. in May 2004.
4.In July 2005, American opened the first phase of its new 1.5-million-square-foot terminal at New York's Kennedy International Airport. In Nov 14 same years American launched daily nonstop service between Chicago and Delhi, India, flying the 7,500 miles – AA's longest nonstop route – with Boeing 777 aircraft.
5.In 2006, American celebrated the 25th anniversary of its AAdvantage program – the world's first frequent flyer program that revolutionized the airline industry and set the standard for similar initiatives in many other businesses. AAdvantage began with 300,000 members. Today, it has more than 50 million members.
6.In November, 2007, AMR Corporation, the parent company of American Airlines, announced that it plans to divest American Eagle, its wholly owned regional carrier. The company said it expects to complete the divestiture in 2008, but that the form of the divestiture is still under study.
7.In January 2008, American introduced a mobile version of AA.com that allows customers to access many of the helpful features of AA.com via a Web-enabled cell phone or other Web-enabled device. With the mobile feature, customers can conveniently log on to AA.com wherever their cell phone or PDA works – in the middle of a city or miles out in the country, in the United States or overseas – without the need for a desktop or laptop computer. The American Airlines Cargo Division (AA Cargo) received the "International Airline of the Year" awards from the Delivery and Logistics Association at its annual AirCargo 2008 Conference in Orlando, Fla.
8.On Dec. 22, 2009, at approximately 9:22 p.m. CST, American Airlines Flight 331, a Boeing 737-800 aircraft, sustained damage when it overran the runway on landing at Kingston, Jamaica's Norman Manley International Airport. The flight originated out of Ronald Reagan Washington National Airport, operated into Miami International Airport, and then operated into Kingston's Norman Manley International Airport. All onboard survived the incident.
9.On Feb. 2, 2010, AMR Chairman and CEO Gerard Arpey made the following statement after Japan Airlines (JAL) said it will continue and expand its successful relationship with American and the oneworld Alliance. "We respect that this was an important decision for Japan Airlines and the government of Japan, and we believe they have made the right choice for JAL's many stakeholders, for Japan's national interests and for consumers traveling between Japan and the United States. When oneworld executives and I recently met with JAL Chairman Dr. Kazuo Inamori and President Masaru Onishi and their team, we reiterated our commitment to support JAL on its path to success. We stand firmly by that commitment, and look forward to working closely with JAL to support its restructuring efforts."
10.In 2011, American continued to expand its partnerships with other airlines in addition to enhancing its joint businesses and its participation in the oneworld® alliance.
All in all, they are profit in these 10 years except 911 incident which made them loss.
The strategy of American Airlines is correct, merge the small enterprises, and expansion the domestic market share, and then optimization service.They are the first enterprise combine with e-business and that is a foundation of American Airlines enter the international market. In addition every year, they will adjustment the cost, no matter fuel ,plan, labor or something else, they all analysis carefully so that can save the cost.(American Airlines 2012)

Key factors
As this assignment mentioned before, in 2009 there is a terrorist attacks which is political factor lead to lost. If occurrence of another terrorist attack (whether domestic or international and whether against us or another entity) could again have a material adverse impact on them.
Their business is affected by many changing economic and other conditions beyond their control, and their results of operations tend to be volatile and fluctuate due to seasonality. -actual or potential changes in international, national, regional and local economic, business and financial conditions, including recession, inflation, higher interest rates, wars, terrorist attacks or political instability; -changes in consumer preferences, perceptions, spending patterns or demographic trends; -changes in the competitive environment due to industry consolidation, changes in airline

alliance affiliations and other factors; -actual or potential disruptions to the air traffic control systems; -increases in costs of safety, security and environmental measures; -outbreaks of diseases that affect travel behavior; and - weather and natural disasters.
Thus, their results from operations tend to be volatile and subject to rapid and unexpected change. In addition, due to generally greater demand for air travel during the summer, their revenues in the second and third quarters of the year tend to be stronger than revenues in the first and fourth quarters of the year.(2011 annual report)
Future impact
Actual or threatened U.S. military involvement in overseas operations has, on occasion, had an adverse impact on our business, financial position (including access to capital markets) and results of operations, and on the airline industry in general. The continuing conflict in Afghanistan, or other conflicts or events in the Middle East or elsewhere, may result in similar adverse impacts.
The Terrorist Attacks had a material adverse impact on us. The occurrence of another terrorist attack (whether domestic or international and whether against us or another entity) could again have a material adverse impact on us.(2011 annual report)
Their business is subject to extensive government regulation, which can result in increases in their costs, disruptions to our operations, limits on their operating flexibility, reductions in the demand for air travel, and competitive disadvantages. In particular, existing and possible future environmental regulations may adversely affect their business and financial results.(2011 annual report)Maybe is negatively impact, if there will have a policy which encourage the foreign enterprise that will be positively.(2011 annual report)
Conclusion
The present situation of American Airlines is tend to mature and stable, but for last ten years they still have many years have fuel loss and operating income loss, fuel loss is beyond their control because the price of fuel is not controled by them, but operating income loss, it could be reduce in the future, and it suppose to be reduce. By the way, stable is suppose to be the preparation of next improve.

Appendix

Source(2011 annual report)

Source(2011 annual report)

Source(2011 annual report)

References : AMR CORPORATION 2011Annual Report Availablefrom: http://www.aa.com/i18n/amrcorp/newsroom/mn-restructuring-news.jsp [Accessed 18 Nov 2012] AMR CORPORATION 2006 Annual Report Availablefrom: http://www.aa.com/i18n/amrcorp/newsroom/mn-restructuring-news.jsp [Accessed 18 Nov 2012]
Bibliography :
American Airlines, (2012). AMERICAN AIRLINES, INC. OVERVIEW . Availablefrom: http://www.aa.com/i18n/amrcorp/newsroom/american-airlines-inc.jsp [Accessed 18 November 2012]
American Airlines, (2012）. AMERICAN AIRLINES, INC. OVERVIEW . Availablefrom: http://www.aa.com/i18n/amrcorp/newsroom/american-airlines-inc.jsp [Accessed 18 Nov 2012] .
American Airlines, (2012）AMERICAN AIRLINES, INC. OVERVIEW . Availablefrom: http://www.americanairlines.cn/i18n/amrcorp/corporateInformation/facts/history.jsp[ Accessed 18 Nov 2012]
Market entry strategy 2012 Available from: http://ebooks.narotama.ac.id/files/Global%20Marketing%20Management%20(5th%20Edition)/Chapter%209%20GlobalMarketEntryStrategies.pdf [Assessed 18 Nov 2012]

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