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