Strategy Plan for American Airlines Co Research Paper

Strategy Plan for American Airlines Co - Research Paper Example The company’s top priority is to meet or exceed the needs and expectations of their customers by giving them the best travel experience upon boarding, on-board, and upon arrival. This could be done through route network optimization, competitive pricing, cost structuring, safety and security, and many more. The main trust of this paper is to provide a strategy plan for American Airlines Inc. This plan would incorporate competitive strategy that would help the company become the market share leader and largest air carrier in the world. 2. American Airlines, Inc. A. Business Overview i. Company history. American Airways was founded last 1930 through the consolidation of 85 subsidiaries airlines of The Aviation Corporation. American Airways was renamed to its current American Airlines Inc. under the appointment of the new CEO, C.R. Smith; the airline is headquartered in Fort Worth, Texas. For several years, AA had managed to introduce improvements in terms of technology, fliers p rogram, quality service, etc. making AA the largest in passenger miles and passenger fleet size. AA had maintained its strong presence particularly in the U.S. domestic market, and in 2009, â€Å"about 38.85 of Americans flying were international- Latin America and Caribbean, 18.7%; Europe, 15.6%; and Pacific, 4.5%† (â€Å"AMR Corporation,† 2010). Since then, AA had been successful and considered to be one of the biggest global airlines that served one-third of the U.S. population (85.7million) and more than 300,000 tons of cargo in a year. On a daily basis, the carrier transported an approximately 275,000 passengers between nearly 250 cities in over 40 countries with average daily flights of 3,400. ii. Worldwide operator. AA is one of the largest operators worldwide with a total of 623 active aircrafts as of 2010 and the largest number of international destinations. The carrier has scheduled domestic flights throughout North America, South America, Central America, an d other extensive international network in East and South Asia, and Europe. It has been more successful and gain competitive advancement after combining network fleet with AmericanConnection and American Eagle as its regional affiliates. B. Organizational Structure i. 655 Aircrafts/ 260 Destinations/ Dallas Hub AA is wholly owned subsidiary of AMR Corporation which is a publicly-traded company. The accountability and responsibility structure of AA is often disseminated in the organization through the board of directors and a chief executive officer. A large commercial airline like AA has hundreds of smaller stations to points all over the world, and hub airports that include: Chicago, Miami, New York, Los Angeles, and Dallas/Fort Worth International Airport - the largest hub. To send passengers to these hubs, AA employed various aircrafts such as Boeing, and ATR, ERJ, Bombardier for American Eagle. Currently, AA has 623 aircrafts with more than 621 fleet size and 250 destinations ac ross 40 countries around the world. C. Business Segments i. Domestic (U.S.). The U.S. domestic market is dominated by AA with a market share of 13.7%. The regional carriers of AA, American Eagle and AmericanConnection served as an advantage to the company as the affiliation acquired 7.5% of the total domestic market (Vasigh, Fleming, & Tacker, 2008, p. 14).