American Airlines And The Air Travel Business Essay example

1040 Words Oct 29th, 2015 null Page
American Airlines has been a leading US airline industry since the 1930s. It was a crucial innovator in the air travel business. American grew and prospered generally, until airline deregulation in the US in the 1980s. Since then, the firm has experienced significant problems in handling the new environment of increased competition and the consequent need to diminish fares and costs. The company 's high wage and the strong unions for pilots and flight attendants have led to labor conflict through this decade, concluding in an expensive strike by flight attendants in 1993 and a threatened strike by pilots in 1997.

As a result of the problems above, American Airlines is trying to change its operations by cutting costs and its high level of debt. In addition, it is also reducing its course of organization and getting rid of those that loose them money. So In summary, American Airlines is trying to adjust to a modern age of a deregulated and more competitive airline industry.
American Airlines started out as the Aviation Corporation (AVCO) in 1929 when Sherman Fairchild formed it as a subsidiary of his Fairchild Aviation Corporation. The following year, it purchased about 85 separate airlines and united and synched their routes, creating American Airlines. But, in 1934, regulations forced the separation of the airline from its airplane manufacturer parent because of many concerns. This was mainly made possible because the US mail heavily subsidized the airlines in those days,…

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