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American airline vs southwest
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Executive Summary
1. Introduction
This comparison between American Airlines (AA) and US Airways (AWE) starts from the year ending report in 2008 after AWE finally completed embedding America West into their operations in October, a process begun in 2005. Neither has taken part in any mergers or takeovers since then and, despite AWE briefly flirting with the idea of taking over United Airlines in 2008, merger and acquisition plans for both had been subordinate to recovering from the Global Financial Crisis (GFC).
They have been operating as passenger and freight carriers, albeit under different corporate identities, since the beginning of commercial aviation in the 1930’s. They have weathered the cycles encountered by airlines and the aviation industry in general – political, economic, environmental and social; as well embracing the technological progress afforded the industry.
Both airlines are Legacy Carriers (Holloway, 2008), each having a domestic American network and an international network. Each operates a hub and spoke network; American from hubs at Dallas Fort Worth, John F Kennedy NY, Los Angeles, Miami and Chicago O’Hare: US Airways from Charlotte, Philadelphia, Phoenix and Washington DC and have many competing sectors and market segments.
Unlike Low Cost Carriers (LCC) (Wensveen, 2011), both offer the full range of services expected of Legacy Carriers; three class cabins (two on some sectors), full meal services, in-flight entertainment (IFE), airport lounges and Frequent Flyer programs and, unlike LCCs, they are members of global alliances.
AWE has managed to exit the GFC and improve its balance sheet while AA has consistently made losses until at the end of 2011 it sought Chapter 11 bankruptcy protection fr...
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...yment. Competitors began to record profits and apply competition throughout their network. Creditors, customers and investors were becoming increasingly concerned with the performance of AA. Finally in November 2011, American Airlines filed for bankruptcy protection: the first time it had ever done so.
Throughout this period, all comparisons show that US Airways was in a better economic position than American Airlines: except for a few metrics in select years where AA was able to improve due to Chapter 11 protection. AWE consistently produced higher revenues per ASM combined with lower CASM – the recipe for a sustainable competitive advantage.
With few overlapping routes, a domestic network improvement for AA, as well as an international improvement for AWE; anti-trust courts had few reservations and approved the merger creating the world’s largest airline.
For starters a few days before the attack on 9/11, the airlines stocks did go up. Which means the supply and demand was greater. America was making more money, which is good. The airlines that stocks markets went up, were the airlines that were hijacked which than lead to them going bankrupt. Gabi Logan was saying on USA today “ Despite this government-funded measure, several prominent American airlines declared bankruptcy not long after the 9/11 attacks.” Due to bankruptcy more than just money was
We compared the two companies in a variety of ways. To start, we will give a brief background
The two airlines have minimal similarities; each is successful at what they do and are no-frills
AAL: Description//History: Starting with American Airlines Group Inc. or AAL, this company runs in the airline industry, as you can tell by the name. Originally known as American Airlines but recently changed its name, adding in “group”, as of December 2013. The airline has traveled to over 54 countries, operating on 6,700 flights a day to more than 300 destinations, holding a daily number of 500k passengers! The airline was founded in 1930 where its headquarter lies near the city of Dallas. (AAL Profile | American Airlines Group, Inc. Stock - Yahoo! Finance) Although the airline initially was placed in New York as a head quarter, where it first started its stock exchange on June 10th of 1939 but that soon transitioned to Texas. AAL became one of the biggest airlines in the world creating over 900,000 jobs worldwide, contributing to almost 100 billion dollars to the United States and other international economies. They also backed up 1,400 organizations around the world! The making of the company was back on April 15th 1926 when a fresh pilot named Charles A. Lindbergh sent off a pack of mail on a small biplane traveling with it to St. Louis. Lindbergh was already a chief pilot of the second airline company to do the actions of sending airmail. This airline being Robertson Aircraft Corporation of Missouri and is recognized as one of the airlines that emerged with AAL. The alliance began in 1929 and in 1930 more companies emerged together and formed what is now American Airlines! (American Airlines Group) (HISTORY OF AMR CORPORATION AND AMERICAN AIRLINES)
"Problems" in the airline industry have not risen due to too much competition within the industry. To the contrary, Washington regulators should turn the industry loose in any more ways that it can. Lowering restrictions to enter the market place, emphasizing private ownership of aviation matters, and encouraging open and free competition within the scope of anti-trust law should be the goals of the Clinton Administration. Instead of heading towards re-regulation, Washington should get out of the airline business for good.
...ry long and successful history in the airlines industry, which makes it one of the leading airlines in the world. Also, it provides the most comfortable flights and services to its costumers and employees, which makes it unique.
In choosing Delta Air Lines and Southwest Airlines for this comparison was simply based on my wife’s familiarity with being her 10th year anniversary today working for Delta Air Lines and the extensive travel, we have had over the years, well extensive to us as having some first-hand knowledge in the service of these two companies. In attempting to be bias over the years there has been some deciding factors as why we like utilizing and trusting Delta Air Lines service beyond my wife’s affiliation that to us being thought of as just regular folks have found a number of inconsistencies in service that the Airlines provide. Some of these inconsistencies are very blatant and it will be interesting to compare their operating, financial bottom lines
As aviation matured, airlines, aircraft manufacturers and airport operators merged into giant corporations. When cries of "monopoly" arose, the conglomerates dismantled.
As a result, the company has faced a severe back down in the demand of customers and revenues. The company should have installed more and more capacity in order to strengthen the revenues of the company and increase the services according to the demands of the passengers. The airline could have prepared an agreement to restore back the wages of the employees just after the crisis handling process in order to retain and maintain the market position of the American airlines (Hollenbeck & Wright,
Alaskan Airlines is the epitome of competitive advantage. This airline has been profitable for 84.6 percent of their duration and is still an independent airline. Alaskan Airlines has shown impressive statistics, such as their significant increase in profit from 2011 to 2012. They reported a 29 percent profit in 2012 with a record of 316 million net income (business insider). This airline has shown greater than a 300 percent rise in stock since 2008.
United Airlines fleet is known to be the oldest in service. In 2010, United Airlines merged with Continental. Unlike competitor mergers like Northwest and Delta or US Air and American United Airlines was not performing well, having low industry performance ratings. While their employees and customers satisfaction ratings are decreasing.
Travel has been always a great motivator for humanity, some people work hard their entire lives just to save enough to break a glimpse at what this beautiful planet has to offer. Now who could help these people get from point A to point B, well it’s going to be airlines of course. Airline companies offer travel across the nation or globe via aircraft, therefore closing the distance gap that was much bigger in the last 100 years or so. From the foundation of aviation in the early 1900’s to the current state of it, there has always been some sort of aviation company providing transport, while it may not always has been people, it still provided transportation. Northwest Airlines was one of those airlines that started at the very beginning of
The perennial crisis in the airline industry: Deregulation and innovation. Order No. 3351230, Claremont Graduate University). ProQuest Dissertations and Theses,, 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364.
When analyzing Delta, you do not have to search very far before quite possibly one its strongest attribute rears its head. Based on calendar 2000 data, Delta is the largest U.S. airline in terms of aircraft departures and passengers enplaned, and third largest as measured by operating revenues and revenue passenger miles flown. Delta is the leading U.S. airline in the transatlantic, offering the most daily flight departures, serving the largest number of nonstop markets and carrying more passengers than any other U.S. airline. Delta Air Lines transports more passengers worldwide than any other airline. Through a vast worldwide route system Delta has flown over 117 million passengers, more than any other airline in the world. Delta mainline, domestic and international service, Delta Express, Delta Shuttle, Delta Connection®, Delta Sky Team and Worldwide Partners operate 6,400 flights each day to over 450 cities in 98 countries.
Through increased competition, especially Southwest, AirTran is only available mainly in the eastern United States. Customers needing to travel to the western US probably will choose another airline that could create brand loyalty for another airline.