American Airlines Swot Summary
Michael Womack
Bus260
8/25/13
American Airlines SWOT Analysis After watching the CNBC special about American Airlines and a week inside their business I noticed several interesting things. Though it was dated few years ago many of the issues are still the same. They had several Revenue drivers; Cargo income, excess baggage fees, last minute departure fees, Postal cartage, and miscellaneous charges for meals, drinks, and accessories. These are not needed but sometimes are needed on certain longer flights. They provide an extra income that may just keep a transcontinental flight from losing money. However there are several cost drivers that could break the airline and cause a large loss of income. A few are; excess flight attendants, excess fuel not needed, over weight cargo, competition from under cut rates, and decreased maintenance intervals. These are just a few drivers that cost them money. For instance the video didn’t describe how much the hydraulic leak and warning light repair set them back, but I can make an educated guess that it possibly took several profitable flights to recoup that loss. American Airlines has several strengths, weaknesses, opportunities within the company, since they have been the strongest and longest lasting giant in the airline business. A few of these strengths are.
Strengths * Brand. They have built a strong name and recognized as an industry leader. Standing through the economic downfall that ruined so many companies old and new. * Man Power. They have the fleet and man power in the industry to complete and maintain the entire fleet in optimal performance. This even has generated outside income from other companies sending their fleet to AA for repair. * Rewards. The Advantage program is a reward system that has gained them more business just from ordinary people who use the cards and partners inside the program to gain free or discounted rates. * Unity. They have a common bond with worker and managers
Bus260
8/25/13
American Airlines SWOT Analysis After watching the CNBC special about American Airlines and a week inside their business I noticed several interesting things. Though it was dated few years ago many of the issues are still the same. They had several Revenue drivers; Cargo income, excess baggage fees, last minute departure fees, Postal cartage, and miscellaneous charges for meals, drinks, and accessories. These are not needed but sometimes are needed on certain longer flights. They provide an extra income that may just keep a transcontinental flight from losing money. However there are several cost drivers that could break the airline and cause a large loss of income. A few are; excess flight attendants, excess fuel not needed, over weight cargo, competition from under cut rates, and decreased maintenance intervals. These are just a few drivers that cost them money. For instance the video didn’t describe how much the hydraulic leak and warning light repair set them back, but I can make an educated guess that it possibly took several profitable flights to recoup that loss. American Airlines has several strengths, weaknesses, opportunities within the company, since they have been the strongest and longest lasting giant in the airline business. A few of these strengths are.
Strengths * Brand. They have built a strong name and recognized as an industry leader. Standing through the economic downfall that ruined so many companies old and new. * Man Power. They have the fleet and man power in the industry to complete and maintain the entire fleet in optimal performance. This even has generated outside income from other companies sending their fleet to AA for repair. * Rewards. The Advantage program is a reward system that has gained them more business just from ordinary people who use the cards and partners inside the program to gain free or discounted rates. * Unity. They have a common bond with worker and managers