American Airlines: Business Development and Historical Analysis Report

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Added on  2022/10/14

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This report provides a comprehensive overview of American Airlines, tracing its evolution from its early beginnings to its current status as a major international airline. It details the airline's formation through mergers, its expansion, and the challenges it faced, including financial difficulties and bankruptcy. The report highlights key milestones such as the acquisition of Trans World Airlines and the merger with US Airways. It also touches upon the implementation of environmental business strategies and the airline's operational scope. The report provides insights into the airline's business development, historical context, and financial performance, offering a valuable resource for understanding American Airlines' journey and current standing within the aviation industry.
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Running header: Biography 1
Biography on American airlines
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Biography 2
American Airlines is a prime airline based in the United States that serves nearly fifty
countries globally. The airline is located in Texas and is regarded as the world’s largest airline in
regards to revenue, the quantity of destinations served, fleet size, passengers carried, and
scheduled passengers’ kilometers flown (Atack, 2018). American Airlines also operates
extensive domestic and international networks with almost 6,700 flights daily.
American Airlines was formed in 1930 through a merger of about eighty small-scale
carriers. The first two nucleate companies namely, Colonial Air Transport and Robertson
Aircraft Corporation were merged in 1929 as a holding company known as the Aviation
Company. Later, in 1930, the company was rebranded to American Airways after being made an
operating company. However, as the new attrition and laws of mail contracts pressured other
airlines to redo their operations in 1934, the company reorganized itself to become the renown
American Airlines. The airline experienced great success between 1970 and 2000, and therefore
grew to become an international carrier hence acquiring Trans World Airlines in the year 2001
(Atack, 2018).
However, in early 2000, American Airlines began experiencing some financial
difficulties and therefore, the company underwent through a period of significant restructurings
such as reduction of seating capacity, job cuts and reduction of flight routes. Environmental
business strategies were also adopted in 2009 through a partnership with the Environmental
Protection Agency. Nonetheless, the company continued to struggle, and in 2011, the company
filed for bankruptcy. Later in early 2013, US Airways agreed to merge with American Airlines in
a major deal that would create the largest Airline though the companies began operating as one
airline in 2015 with a single passenger service system (Zhang & Nozick, 2018).
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Biography 3
References
Atack, J. (2018). Transportation in American Economic History. The Oxford Handbook of
American Economic History, 2, 23.
Zhang, Y., & Nozick, L. (2018). Investigating the Pricing Impacts of the American Airlines and
US Airways Merger. Transportation Research Record, 2672(23), 15-19.
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