Essay on Brief History Of American Airlines And The Airlines
The recent merger between American Airlines (AA) and US Airways resulted in The American Airlines Group (AMR) forming the largest airline in the world. AMR operates over 6,700 flights daily to over 350 destinations in 50 countries and recently set new records for both traffic and capacity in February, 2016 (AA, 2015, 2016). AA earned many successes and even more challenges over the decades. This paper will briefly highlight a few of the major events in American Airlines history including how the airline was created, important mergers and related business aspects, and a brief summary of American Airlines pioneering achievements in aviation.
A young accountant named Cyrus R. Smith was promoted to general manager of The Aviation Company (AVCO), an upstart airline holding company which came under the control of industrialist E. L. Cord. By 1934, AVCO bought and merged over 80 airlines under the name American Airways. Later that year, federal air mail contracts were up for bid. Due to contract violations four years earlier, Congress would only accept bids from new companies, which forced the company to change their name to American Airlines. A year later, Cord sold off his entire transportation empire and AA became a publicly traded entity with Smith serving as Chief Executive Officer and chairman (Reed & Reed, 2014). Smith is still considered the father figure of AA. He finally retired in 1974 after 40 years with the airline.