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American Airlines and the
International MarketGroup #9:
Pamela Sohal
Garrett Schick
Mary Catherine Schoals
Adam Sharpe
History: Past & Present
• Began in 1930 as an air mail carrier• Revolutionized airline industry by
creating DC-3 in 1934• Helped the war effort by
becoming a military airline during World War 2• Entered international market in
the 1960's• Joined OneWorld Alliance in 1999• Closed merger with U.S. Airways
in 2013
Government Intervention & Deregulation• Definition of
Intervention• DOT and FAA• ATOS and Airport
Compliance Program• Airline Deregulation
Act of 1978• CAB disestablished
Open Skies
• Agreements with 115 countries• Routes• Recent appeals
by legacy carriers
Government Intervention and American Airlines
• 9/11• Flight 11• Opened
vulnerabilities
• Complete Overhaul of System • TSA• DOHS• Cost/Time/
Demand
Government Intervention and American Airlines
• Overflight Fees• Nine “Freedoms of
the Air”• Most countries have
some variation/all different• Balance between
distance and overflight fees• American Airlines
looking for better software
Government Intervention and American Airlines
• Emissions• Balance between
different governing bodies
• Cap and trade systems
• Investments in infrastructure
• Fuel Prices• Volatile • Low margin vs. high
operating costs
Past and Future Handlings
• Regulation• Open Skies
Agreements• Political Action
Committee (PAC) – 1985
• A4A, IATA, RAA • Safety• Aviation
Transportation Security Act and the TSA• Partnering with
Homeland Security
Past and Future Handlings
• Profitability • Aircraft fuel and
Fuel Hedging• Environmental Issues• New Aircraft• Aircraft weight
reduction savings
Recommendation for Merger
• Adequately inform customers of the changes• Focus on quality
customer service
• Properly Train Employees • Offer “in-office”
training• Inform of all merger
effects
Thank You