...MERCADOTECNIA Caso 3 American Airlines INTRODUCCION En esta presentación, definiré los aspectos básicos de lo que es una investigación de mercado y su uso para las empresas, aplicándolos al caso de American Airlines y los resultados obtenidos en 1992 con sus estrategias y el impacto que tuvo la introducción de la competencia en el mercado, aunado a un análisis FODA de la empresa. La mañana del 15 de abril de 1926, un joven aviador llamado Charles A. Lindbergh cargó una saca de correo en su pequeño biplano DH-4 y despegó de Chicago hacia San Luis. Ese mismo día, más tarde, él y otros dos pilotos transportaron tres cargas de correo desde San Luis hasta Chicago. Lindbergh era, a la sazón, piloto jefe de la empresa Robertson Aircraft Corporation, radicada en Misuri, que fue la segunda empresa de aviación en recibir un contrato del correo aéreo de los Estados Unidos. Esta fue una de la veintena de empresas que, con el tiempo, llegarían a conformar la actual American Airlines. La unificación comenzó en 1929, cuando se formó The Aviation Corporation para adquirir empresas de aviación jóvenes, incluida Robertson. En 1930, las filiales de The Aviation Corporation se incorporaron a American Airways, Incorporated. En 1934, American Airways pasó a ser American Airlines, Incorporated. En 1991 la estructura de precios del sector se había vuelto demasiado compleja En 1992 American Airlines Inc, era la mayor línea área de Estados Unidos, con una flota de 662 aviones,...
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...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...
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...American Airlines is the most profitable and the biggest airline in the USA, which became the most influential and greatest airline in the world in 2013 after the merger with US Airways. The company transports the highest quantity of passengers per year. The airline serves for more than 330 million passengers every year and owns about 655 aircraft, which fulfill various types of transportation – passenger and cargo ones. The headquarters of the airline is situated in Ford-Yort not far from the international airport in Dallas. American Airlines makes flights about the US and fulfills international flights to South America, Europe, Japan, India and China. It is supposed to be the second most profitable airline in the world after Air France-KLM. The history of the company dates back to the first half of the 20th century and started from 1926, when more than 80 carriers decided to unite into the single company called American Airlines. In 1930 the airline was already serious enough to make flights between the biggest cities of the US and its fleet consisted of wooden planes and metal planes Ford Trimotor. It does not worth mentioning that in the War time more than the half of the company’s aircraft was used for the military purposes and it was World War 2 which maintained the development of technologies and the quality of aircraft. The post-war period is characterized with the rapid growth and further development of American Airlines. It was one of the first airlines which...
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...Business Case Study: American Airlines 1. Perform a five-forces analysis of the US airline industry focusing on entry barriers and pricing rivalry Threat of new entrants: Though it might appear to be hard to get into, entry into the airline industry depends on whether there are substantial costs to access banks and credit. If borrowing rates are cheap, then there is more of a likelihood that new competitors will enter and the more saturated it will become for all competitors. However, an airline with a strong name brand like US Airways, combined with the offer of incentives, can lure customers away from new entrants, even in prices are higher. Power of Suppliers: In the airline supply industry, there is a duopoly between Boeing and Airbus. Because of this, there is not much cutthroat competition between the two. Moreover, suppliers will not likely vertically integrate in order to start offering flight service in addition to building planes. Power of Buyers: The bargaining power of buyers in the airline industry is very low. There are high costs for the buyer if he wishes to switch airplanes. Secondly, the service between airlines is practically identical. The seats won’t be any more comfortable nor will the food be any better. Threat of Substitutes: For those who need to travel internationally for business or leisure, the threat of substitution is low. For regional travel however, one might opt out to take a train or simply drive. For those that need to conduct business...
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... [Marketing in downturn] | American Airlines American Airlines (AA) is a major U.S. airline and a subsidiary of AMR Corporation. Founded in 1930, AA flies throughout North and South America, the Caribbean, Europe, and Asia/Pacific with 260 destinations in total. AA has a fleet size of 605 planes. The revenue of 2010 was US$ 22.17 billion and this shows that AA is still one of the biggest airline companies in the U.S. Impact of the financial crisis The financial crisis hit AA hard as it was already suffering due to the inflation of oil prices. The high price of oil resulted in a very high cost of fuel for the company’s jets. Oil prices have gone up to more than $130 per barrel. The increasing cost of oil has cost the company almost $3 billion since the beginning of 2008. The stock prices went down in response to the crisis and the increasing oil prices. In November 2011, AMR filed for bankruptcy protection in an effort to reduce labour costs and shed its heavy debt load. American Airlines until the crisis in 2008 Due to the high price of oil, resulting in very high costs of fuel for American Airlines and a decline in travel demand; American Airlines had to decrease the amount of domestic flights by 12 % after the end of summer 2008. Earlier American airlines had only meant to lower the amount of flights by 4.6 %. As the oil crisis started to have a larger impact on American Airlines, adjustments had to be made in order to stay profitable...
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...Date of foundation of American Airlines is considered to be 15 April 1926. On this day, the pilot Charles Lindbergh on the DH-4 biplane, which belonged to the company Robertson Aircraft Corporation, delivered to St. Louis from Chicago to mail a package. Actually the prototype of American Airlines American Airways was the fruit of the merger of 82 small companies-carriers. January 25, 1930, American Airways became virtually a single corporation, though before this name was used as a name of a number of independent airlines operating in all parts of the country. Since that day, the company began to be based in New York. Its fleet consisted of wooden model planes FokkerTrimotor, as well as metal FordTrimotor. The company began to make regular flights to Dallas from Chicago, Boston and New York; Dallas to Los Angeles. In 1934, companies in the park there were planes with bunks - CurtissCondor. Also in 1934, American Airways was acquired by EL Cord, after which it was renamed by calling American Airlines. Since 1936, companies in the park there are the DC-3 aircraft. The millionth passenger boarded the aircraft of one of the companies in 1937. Half of the company's fleet during the war was used for the army....
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...American Airlines Foreign Direct Investment Plan University of Phoenix June 8, 2009 American Airlines Foreign Direct Investment Plan 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. Executive Summary American Airlines and American Eagle (firms owned by AMR) serve some 250 destinations in approximately 40 countries including destinations in Europe, the Americas, and Asia-Pacific. The combined aircraft of both carriers comprise of 900 airplanes with 625 of those being jets. On any given day the airline transports 270,000 passengers on approximately 3,300 flights to over 170 destinations worldwide. Additionally, American Airlines is part...
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...Executive Summary – American Airlines The future of American Airlines remains uncertain after a lieu of mistakes and misfortunes. American Airlines’ parent company, AMR, filed Chapter 11 bankruptcy in November of last year after recording net losses of $2.1 billion, $1.5 billion, and $471 million in 2008, 2009, and 2010 respectively. Also, with AMR’s previous CEO declaring retirement, new CEO Tom Horton was named. In the wake of their financial predicament, American Airlines is also having PR, managerial, and maintenance problems. The pilot union is demanding an industry standard contract that includes salary and job security provisions. The inability of AA to negotiate a deal, along with thousands of job cuts, has left many American Airlines’ employees bitter. In recent months, flight attendants have engaged in very inappropriate public rants and rude behavior consequently causing delays among flights and irate customers. In addition to the behavioral issues, several planes have had to make emergency landings due to loose seats and other incidents of insufficient inspection. In July, five AA passengers had to be hospitalized after encountering turbulence during a flight. American Airlines’ fleet of aircrafts has an average age of 15 years. These aged carriers are inefficient energy consumers and multiply costs. American Airlines has openly declared their opposition to a merger with US Airways, although, the final decision rests with AMR and negotiations are still in progress...
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...Refer to the discussion of the New York-San Juan pricing decision in the case. What additional information should Doug Santoni collect to decide on a response to Eastern's pricing initiative? In response to Eastern’s pricing initiative, Doug Santoni should collect several bits of information before deciding on an appropriate rejoinder. First, he should know the volume of the passengers that travel along this route, for both American Airlines, and it’s main competitors, Eastern and TWA. This will allow him to make the correct downstream calculations such as changes in revenue, profits/losses, and capacity along the New York-San Juan route. A breakdown of the busiest times/routes (for all airlines, but especially American) would be useful to determine which flights need to be targeted, if any, with a response. Most of the other information Doug should collect relates to the makeup of the passenger types. How many passengers are traveling for business versus pleasure? Knowing this could again help predict capacity and revenue changes. While the makeup is divided fairly evenly into three categories (business, leisure, and locals), what is their specific makeup during the peak and slow seasons? The latter is when Eastern has tended to target with low one-way fares in the past, and it would be good to know who purchases those tickets at the time. If the low point is coming from a slow in leisure and/or local passengers, a price drop may be needed to increase passenger...
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...Refer to the discussion of the New York-San Juan pricing decision in the case. What additional information should Doug Santoni collect to decide on a response to Eastern's pricing initiative? In response to Eastern’s pricing initiative, Doug Santoni should collect several bits of information before deciding on an appropriate rejoinder. First, he should know the volume of the passengers that travel along this route, for both American Airlines, and it’s main competitors, Eastern and TWA. This will allow him to make the correct downstream calculations such as changes in revenue, profits/losses, and capacity along the New York-San Juan route. A breakdown of the busiest times/routes (for all airlines, but especially American) would be useful to determine which flights need to be targeted, if any, with a response. Most of the other information Doug should collect relates to the makeup of the passenger types. How many passengers are traveling for business versus pleasure? Knowing this could again help predict capacity and revenue changes. While the makeup is divided fairly evenly into three categories (business, leisure, and locals), what is their specific makeup during the peak and slow seasons? The latter is when Eastern has tended to target with low one-way fares in the past, and it would be good to know who purchases those tickets at the time. If the low point is coming from a slow in leisure and/or local passengers, a price drop may be needed to increase passenger...
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...BAE Automated Systems Executive Summary This report concerns the automated baggage handling system which was built by BAE Automated systems. Faced with the need for greater airport capacity, the city of Denver elected to construct a new state- of- the- art airport that would cement Denver’s position as an air transportation hub. Covering a land area of 140km-squared, the airport was to be the largest in the United States and have the capacity to handle more than 50 million passengers annually. A mechanized baggage system was at the heart of the new Denver Airport, as for all major new airports. In the case of Denver, this was to be something unique: the “integrated Automated Baggage Handling System”, originally designed to distribute all baggage, including transfers- automatically between check-in, the aircraft and pick-up on arrival. The airport’s baggage handling system was a critical component in the plan. By automating baggage handling, aircraft turnaround time was to be reduced to as little as 30 minutes. Faster turnaround meant more efficient operations and was a cornerstone of the airports competitive advantage. Despite the good intentions, the plan rapidly dissolved as underestimation of the project’s complexity resulted in problems and public humiliation for everyone involved. Thanks mainly to problems with the baggage system, the airport’s opening was delayed by a full 16 months. Expenditure to maintain the empty airport and interest charges on construction...
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...Analysis American Airlines (AMR) Abstract American Airlines (AAs), American Eagle, and American Connection currently provide scheduled service to 250 cities in 40 countries, with an average of over 3,400 daily flights. Together, these carriers operate a fleet of over 700 aircraft and are subsidiaries of the AMR Corporation. Though AMR was founded in 1982, the AAs brand has been a major player in air travel for over three quarters of a century (www.AA.com.). The AMR mission statement is: "Setting the industry standard for safety and security; providing world-class customer service; creating an open and participative work environment which seeks positive changes, rewards innovation and provides growth, security and opportunity to all employees; and providing consistently superior financial returns for shareholders." (www.AA.com). An article written by Gaby Logan from USA Today stated: “Despite this government-funded measure, several prominent AAs declared bankruptcy not long after the 9/11 attacks, included US Airways and United Airlines.” As a result of the massive financial losses due to lack of passenger demand, canceled flights and increased expenditures for security, even airlines that did not have prior financial issues were forced to renegotiate labor contracts and lay off high numbers of employees, such as the 7,000 employees laid off by AA.”(Gaby Logan, USA Today article published Nov 2009). US Airways, Delta Airlines and Southwest Airlines, just...
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...JetBlue Airways Corporation vs American Airlines Group Inc. JetBlue Airways Corporation vs American Airlines Group Inc. JetBlue Airways Corporation JetBlue Airways is an airline American of low cost belonging to the JetBlue Airways Corporation. The company is headquartered in Forest Hills, near the district of Queens in the city of New York. Its main base is located at the John F. Kennedy International Airport .In 2001 , JetBlue began operations at Long Beach Airport in Long Beach, California, and then in the Logan International Airport in Boston, Massachusetts, in 2004 . It also has operations in Fort Lauderdale, Washington-Dulles and the Orlando International Airport. The airline mainly serves destinations in the United States, with flights to the Caribbean, Bahamas, Bermuda, Mexico, Colombia, and Peru and from 25 February 2016 to Ecuador. David Needleman founded the company in February 1999 under the name "New Air". In September of that same year, the airline you were granted 75 tours in John F. Kennedy International Airport, and the formal authorization of the United States was received in February 2000, beginning operations on 11 February. JetBlue's founders had originally intended to call "taxi" and therefore wear yellow to associate the new airline to the city of New York. The idea was rejected for several reasons: the negative connotation of the taxis of New York; the ambiguity of the word cab with respect to air traffic control; and threats of investor JP Morgan...
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...American Airlines 1992 Value Pricing Strategy Evaluate American’s 1992 announcement of a new rate structure: a. What changes did American make? To replace the old domestic air-fare system with 16 different prices, discounts, and restrictions that are constantly changing, American made four key changes to its fares. 1. Instead of 16 different prices, American simplified its pricing structure to include only 4 kinds of fares: a first-class fare, a coach fare that can be bought anytime before flight time (full-fare), 21-day advance-purchase fare, and 7-day advance-purchase fare. The new fare structure was expected to reduce administrative labor costs related to managing different fares by $25 million annually. The change was also expected to reduce coach fares by 38% on average and first-class fares by 20% to 50%, while the cuts in discount rates were smaller. American believed that the fare cuts will produce an increase in travel (number of air tickets sold) which would not only cover but also exceed the reductions in prices per ticket. American anticipated the new system will eventually increase annual revenue by as much as $350 million. 2. Unlike the old fare system which did not allow refunds or reschedule, passengers who buy advance-purchase tickets under the new system will have the option to reschedule their flights if their travel plans change by paying a $25 processing fee. First-class and coach tickets are refund-able, which stays the same from the old system...
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...Julia’s bag on the scale, the ticket agent informs Julia that $450 is owed for extra weight. What?! Julia has no other option, she took a train to get to the airport from Fresno, so there is no option to get another bag to split the weight. Julia pays it. 20 minutes in to her trip and the budget has been cut almost in half. Paying fees stink! Especially when you are a college student. One of the worst fees that we all have had to pay at one point in time, are airline fees. Between baggage...
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