• Research Paper on:
    American Airlines; A Strategic Proposal

    Number of Pages: 12


    Summary of the research paper:

    This 12 page paper examines a case supplied by the student on American Airlines, which looks at the hardship the company is facing in 2002. The paper outlines the current position, the problems and opportunities and then outlines strategies to increase revenue and cut costs that may bring the company back into profit. For each strategy there is a brief consideration of the cost.

    Name of Research Paper File: TS14_TEameair.rtf

    Buy This Research Paper »


    Unformatted Sample Text from the Research Paper:
    drastic costs but is still loosing in the region of between $10 - $15 million a day. The company needs to take action to resolve the situation. Threats in the  environment include the weak economy and highly competitive structure combined with higher operating costs and diseconomies of scale. However, this also present opportunities to reposition itself, create greater differentiation and  potential acquire new business with the development of a premium service, increase freight carriage and cutting costs with the use if technology. These, and other strategies, may increase revenue and  decrease costs in order to return the company to profit in the short term and build strong foundation in the long term. 2. Situation Analysis American Airlines, the largest  carrier in the US by revenue, accounting for $19 billion which equates to 16% of the total revenue for the industry, and the second largest in terms of air traffic  carried, find themselves in a very difficult position. They are making a substantial losses, with a $545 million losses for the first quarter of 2002, and losses continue at between  $10 and $15 million a day. This period of American Airlines history is being described by Don Catty, the CEO, as the worst period they have faced. To survive  there has been increased borrowing, $800 million using the credit line and $200 million secured against the aircraft. 20,000 employees have lost their jobs, flights have been cut by 20%,  $2.1 billion in planned capital expenditure has either been cut or postponed, and even the board have agreed to pay cuts and commission to travel agents have been cut or  capped. However, the company is still making losses. The situation is one that has been caused by numerous factors all converging. The trigger is seen by many as the 

    Back to Research Paper Results